Adjustable Rate Mortgages

question 34

Multiple Choice

Adjustable rate mortgages

• A)impose both higher risk and higher initial interest payments on the borrower.
• B)impose higher risk on the borrower,but offset the additional risk with lower initial interest payments.
• C)offer both lower risk and lower initial interest payments for the borrower.
• D)offer lower risk for the borrower,but offset the lower risk with higher interest payments.

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Definitions:

Material Resources

Physical items such as equipment, buildings, and raw materials that are used in the operation of a business or project.

Trademarks

Legal protections for logos, names, and other unique marks that distinguish goods or services and protect them from being used without permission.

Raw Materials

The basic, unprocessed resources required for manufacturing goods or providing services, such as metals, wood, oil, or agricultural products.

Outsourcing

Is the process of hiring outside firms to handle basic HRM functions, presumably more efficiently than the organization could.