Your ARM Has a Two Year Adjustment Interval,4% Margin,2% Periodic

question 73

Multiple Choice

Your ARM has a two year adjustment interval,4% margin,2% periodic rate cap and a 6% lifetime cap.This year the market interest index increased by 2.75%.What will happen to your APR on this loan?

• A)It will increase by 2%
• B)It will increase by 2.75%
• C)It will increase by 4%
• D)It will increase by 6%

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Definitions:

Moderate Arousal

An optimal level of alertness or excitement, which can enhance performance on tasks by improving focus and energy.

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Cotisol

Assuming "Cortisol" was intended, it is a steroid hormone released in response to stress and low blood-glucose concentration, involved in various body functions, including metabolism and immune response.

Sympathetic Nervous System

Part of the autonomic nervous system responsible for mobilizing the body's response during stress, including increasing heart rate, and dilating airways.