The Percentage Ratios Used as Guidelines in the Qualification of an Applicant's

question 11

Multiple Choice

The percentage ratios used as guidelines in the qualification of an applicant's income by HUD/FHA are based on the applicant's

• A) effective income not reduced by taxes
• B) net effective income after deduction of both income and social security taxes
• C) net effective income reduced only by withholding tax
• D) net effective income reduced only by social security taxes

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Definitions:

Price Parity Concept

An economic theory which suggests that in the absence of transaction costs and barriers to trade, identical goods will have the same price in different markets when expressed in the same currency.

Agricultural Policy

A set of laws and guidelines which aim to improve agricultural productivity, manage natural resources, and support farmers' incomes.

Agricultural Adjustment Act

A United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses, through paying farmers to reduce crop area.

Reagan Administration

The period of U.S. governance from 1981 to 1989 under President Ronald Reagan, marked by significant economic policy shifts, including tax cuts and deregulation.