Which of the Following Is Not True Concerning Adjustable-Rate Mortgages

question 63

Multiple Choice

Which of the following is not true concerning adjustable-rate mortgages (ARMs) ?

• A) There is usually a limit on how much a rate may increase per year.
• B) There is usually no limit on how much a rate may increase per year.
• C) There is usually a limit on how much a rate may increase over the life of the loan.
• D) The maximum increase over the life of the loan is usually 5%.

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Definitions:

Leader

An individual who guides or directs a group by influencing behaviors, attitudes, or the environment to achieve a common goal.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.

Boss

A person who is in charge of a worker or organization, responsible for directing and overseeing their work.

Social Influence Process

The ways in which individuals or groups affect the beliefs, feelings, and behaviors of others through direct or indirect interactions.