Variables That Affect the Sinking Fund Balance Include

question 1

Multiple Choice

Variables that affect the sinking fund balance include:

• A) the prepayment rate on mortgages in the pool
• B) the reinvestment rate on the sinking fund
• C) the initial overcollateralization
• D) the default rate
• E) all of the above

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Definitions:

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or associations, rather than logical argument, to influence someone's attitude or behavior.

Dispositional Attributions

The inclination to assign the cause of a behavior or event to an individual's innate characteristics rather than to external factors.

Foot-In-The-Door Phenomenon

The tendency for people to agree to a large request after first agreeing to a small one.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.