Which of the Following Is a FALSE Statement in Regard

question 4

Multiple Choice

Which of the following is a FALSE statement in regard to refinancing a home loan?

• A) Lenders are free to set their own requirements for refinancing a loan
• B) Income tax laws may affect the savings in refinancing
• C) A 2 percent reduction in interest rate is a profitable refinancing in every case
• D) A major problem is the appraised value of the property may be less than the balance due on the existing mortgage loan

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Definitions:

Price Of Good Y

The amount of money required to purchase a unit of good Y in the market.

Budget Line

An illustrative chart of all the possible pairs of two items that can be bought within a certain budget at fixed prices.

Price Of X

Refers to the cost that consumers face when purchasing a specific good or service, denoted as "X".

Preferences

In economics, this refers to the subjective tastes and choices of individuals, based on the assumption that consumers prefer more of a good or service than less.