Which One of the Following Is Most Apt to Create

question 4

Multiple Choice

Which one of the following is most apt to create an environment that increases mortgage prepayments?

• A) home mortgage rates remain relatively steady
• B) home mortgage rates decline significantly
• C) number of homeowner's defaulting on their mortgages rises
• D) homeowner's have steady, secure employment at their current jobs
• E) number of employees being transferred for employment purposes declines

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Definitions:

Equity Investment Transactions

Financial activities involving the buying and selling of stock or ownership stakes in a company.

Fair Value Method

An accounting approach used to measure and report the actual or estimated market value of an asset or liability at the present time.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it.

Dividends

Money distributed by a corporation to its members, sharing a part of the company's income.