Which of the Following Is Not True Concerning Adjustable-Rate Mortgages

question 63

Multiple Choice

Which of the following is not true concerning adjustable-rate mortgages (ARMs) ?

• A) There is usually a limit on how much a rate may increase per year.
• B) There is usually no limit on how much a rate may increase per year.
• C) There is usually a limit on how much a rate may increase over the life of the loan.
• D) The maximum increase over the life of the loan is usually 5%.

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Definitions:

Peer Relationships

Social connections among individuals of approximately the same age, which are important for social development.

Avoidance

A defensive mechanism where an individual steers clear of certain thoughts, feelings, or interactions due to perceived negative outcomes.

Centration

A term from Piaget's theory of cognitive development, describing the tendency to focus on one aspect of a situation while neglecting others.

Decentering

The cognitive ability to consider multiple aspects of a situation rather than focusing on a single perspective.