Which of the Following Is Not True

question 25

Multiple Choice

Which of the following is not true?

• A) A conventional mortgage requires a 10-20% down payment.
• B) With government-backed loans, the government insures the loan in the event of default.
• C) Veterans Administration mortgages are extended to most first-time homebuyers.
• D) Government-backed mortgages may require lower down payments than conventional mortgages.

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Definitions:

Insurance Premium

The amount of money that an individual or business must pay for an insurance policy.

Financial Risk

The possibility of losing money on an investment or business venture.

Risk-Averse

A characteristic describing individuals or entities that prefer to avoid risks and favor more certain outcomes.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.