The Following Is NOT Characteristic of an Adjustable Rate Mortgage

question 17

Multiple Choice

The following is NOT characteristic of an adjustable rate mortgage

• A) it has a lower initial interest rate than a fixed rate mortgage
• B) it has lower risk for the borrower than do fixed rate mortgages
• C) it has a limit on the amount the rate can change from period to period
• D) it has a rate that is tied to an index rate

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Definitions:

Sympathetic Nerve Fibers

Nerves that are part of the sympathetic nervous system, involved in the body's fight-or-flight response by increasing heart rate and blood pressure among other effects.

Segmental Contractions

Rhythmic contractions of the intestines that mix and propel contents in the digestive system.

Sloughed-Off Epithelial Cells

Cells that have been shed from the epithelium, the layer of cells covering the body surfaces and cavities.

Trypsin

Proteolytic enzyme formed in the small intestine from the inactive pancreatic precursor trypsinogen.