Which of the Following Statements About Adjustable-Rate Mortgages Is TRUE

question 167

Multiple Choice

Which of the following statements about adjustable-rate mortgages is TRUE?

• A) Interest rates can't change over the life of the mortgage.
• B) Adjustable-rate mortgages are especially attractive to high-income buyers.
• C) Adjustable-rate mortgages usually have interest rates lower than market rates during the first year.
• D) Adjustable-rate mortgages are more attractive when interest rates on fixed mortgages fall.

---

Definitions:

Customers

People or companies that buy products or services from a business.

Collection Time

The average period that a company takes to collect cash from its credit sales.

Cheques

A document that is written, dated, and signed, which gives an absolute command to a bank to pay a specific amount of money to the recipient.