You Are Closing on the Purchase of a New Home

question 17

Multiple Choice

You are closing on the purchase of a new home and your closing costs including down payment are $10,500.To process the loan and be assured of funding,the title company would request your payment as a

• A)personal check.
• B)money order.
• C)cashier's check.
• D)traveler's check.

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Definitions:

Prior Service Cost Amortization

The process of expensing the costs of retroactive benefits granted in a pension plan over a period of time.

Actuarially Determined Discount Rate

This refers to the interest rate used in the actuarial valuation to discount future pension obligations to present value, reflecting the expected rate at which the pension plan's liabilities can be funded or settled.

Pension Liability

The amount of money a company is required to pay into its employees' retirement plans in the future.

Accumulated Benefit Obligation

An estimate of the total amount of an employer's obligation for pension benefits earned by employees to date, not based on future salary increases.