Examlex
The alternative mortgage instrument that has the least amount of interest rate risk for the lender is:
Expected Utility
A concept in economics and finance that represents the average outcome when individuals are faced with uncertain decisions, often used in the context of risk and decision making.
Warranties
Guarantees provided by the seller or manufacturer, asserting that a product will meet specified criteria of performance over a certain period, and offering remedies in case of failure.
Moral Hazard
A situation where one party engages in risky behavior or fails to act in good faith because another party bears the consequences of that behavior, often seen in insurance and financial sectors.
Incentives
Incentives or disincentives that encourage people or organizations to behave in specific manners.
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