From the Perspective of the Lending Financial Institution, Interest Rate

question 34

Multiple Choice

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

• 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:

Singular Propositions

A type of proposition concerning exactly one particular subject.

Distributed

In logic, referring to a term in a categorical proposition that applies to all members of the denoted class.

Distributed

Refers to a system or process that is spread out across multiple locations or among various entities.

Existential Import

The concept that a statement implies the existence of the subject it mentions.