A Problem with Home Equity Loans Is the

question 16

Multiple Choice

A problem with home equity loans is the

• A)high rate of interest on these loans.
• B)difficulty in qualifying for these loans.
• C)short-term nature of these loans.
• D)temptation to spread payments over a long term.
• E)tax disadvantages of these loans.

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Definitions:

Common Stock

Equity securities representing ownership in a corporation, providing voting rights and sharing in the profits through dividends.

Comprehensive Income

An all-inclusive measure of a company's income, including both its net income and other comprehensive income items that are not included in the net income.

Other Comprehensive Income

Components of total comprehensive income that are not part of net income, including items that have not been realized, such as unrealized gains or losses on available-for-sale securities.

Dividend Yield

A metric showing the annual dividend payments of a corporation as a proportion of its share price.