In Loans Negative Amortization Means

question 76

Multiple Choice

In loans negative amortization means:

• A)commission driven brokers sell loans to people who cannot afford them.
• B)loans are granted to borrowers without proof of income.
• C)early payments are lower than monthly interest charges.
• D)interest is charged at rates that move with the market.

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Definitions:

Fair Value Through Other Comprehensive Income

A financial accounting method where certain assets are revalued periodically and changes are recorded in other comprehensive income.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Fair Value Through Other Comprehensive Income

An accounting treatment for certain investments that are measured at their fair value with changes recognized in other comprehensive income until the investment is sold or disposed of.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.