During a Period When Interest Rates Are Very Low by Historical

question 102

Multiple Choice

During a period when interest rates are very low by historical standards and are expected to increase substantially over time, individuals should choose

• A) an ARM with a rate that adjusts after three years.
• B) a fixed-rate mortgage.
• C) an ARM that adjusts after one year.
• D) an ARM with a rate that adjusts every year for five years and then converts to a fixed rate.

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Definitions:

Cardiac Catheterization

A medical procedure used to diagnose and treat some cardiovascular conditions by inserting a catheter into a chamber or vessel of the heart.

Cardiac Arrhythmia

An abnormal heart rhythm that can include conditions where the heartbeat is too slow, too fast, or irregular.

Hypostatic Pneumonia

A type of pneumonia that occurs from prolonged immobility, leading to the pooling and congestion of secretions in the lungs.

Captopril

A medication used to treat high blood pressure, heart failure, and certain types of kidney problems by relaxing blood vessels and making it easier for the heart to pump blood.