When a Borrower Pays a Fixed Monthly Amount on Their

question 63

Multiple Choice

When a borrower pays a fixed monthly amount on their home mortgage based on a fixed rate of interest, this individual has a ________ mortgage.

• A) repayment-based
• B) open-end
• C) fixed-rate
• D) variable-rate
• E) prime-rate

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Definitions:

Foreign Imports

Products or services imported from other countries for the purpose of being sold.

Trade Deficit

A scenario in which a country spends more on importing goods than it makes from exporting them, creating a trade imbalance.

Trade Deficit

A situation in which a country's imports exceed its exports, reflecting a net outflow of domestic currency to foreign markets.

Merchandise Trade Deficit

The economic condition occurring when a country imports more physical goods than it exports, resulting in a negative trade balance.