From the Perspective of the Lending Financial Institution, Interest Rate

question 32

Multiple Choice

From the perspective of the lending financial institution, interest rate risk is

• A)lower on a 30-year fixed-rate mortgage than on a 15-year fixed-rate mortgage.
• B)lower on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage.
• C)higher on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage.
• D)higher on a 15-year adjustable-rate mortgage than on a 30-year adjustable-rate mortgage.

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Definitions:

Electrical Power

The generation, distribution, and use of electric energy.

Dialog Box

A small window that appears in a graphical user interface to communicate information to the user and receive input.

File Name

A label assigned to a digital document or file to distinguish it from others and to indicate its contents.

Save Often

The recommended practice of frequently saving work to avoid data loss in case of a computer or software malfunction.