If Rates in the Market Fall Between Now and One

question 30

Multiple Choice

If rates in the market fall between now and one month from now, the mortgage banker:

• A) loses as the mortgages are sold at a discount.
• B) gains as the mortgages are sold at a discount.
• C) loses as the mortgages are sold at a premium.
• D) gains as the mortgages are sold at a premium.

---

Definitions:

Persuade

The act of influencing or convincing someone to do or believe something through reasoning or the use of temptation.

Orderly Progression

A systematic and sequenced development or process, ensuring a logical flow from one stage to the next.

Reasoning

The mental process of drawing conclusions, making predictions, or solving problems based on logical thinking and evidence.