The Initial Rate on an ARM Will Typically Be

question 46

Multiple Choice

The initial rate on an ARM will typically be

• A)relatively low to benefit the homeowner.
• B)relatively high to allow the bank to recoup costs.
• C)about the same as a fixed rate loan on the same maturity.
• D)set by state law.

---

Definitions:

Career Happiness

A state of well-being related to one's profession, characterized by feelings of satisfaction and accomplishment.

Sense of Competence

The feeling or belief in one's own ability to accomplish tasks and handle situations effectively, contributing to self-confidence and well-being.

Flexible Working Hours

An employment structure that allows employees to choose their working hours within agreed limits, promoting work-life balance and often increasing job satisfaction.

Empty Nest

A phase in a parent's life where their children have grown up and left home, often leading to changes in the parents' lifestyle and emotional state.