Jaime Buys a Home by Paying Part of the Purchase

question 1

Multiple Choice

Jaime buys a home by paying part of the purchase price up front in cash and borrowing the rest of the funds from Valley Credit Union.The part of the price paid up front in cash is

• A)a down payment.
• B)a home equity loan.
• C)a reverse mortgage.
• D)the average prime offer rate.

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Definitions:

Public Good

An offering of goods or services to all society members without any profit, provided by either governmental bodies or private sectors.

Marginal Cost

The financial outlay for producing an additional unit of a product or service.

Public Good

A product or service that is made available to all members of a society, typically funded by the public sector, and is characterized by its non-excludability and non-rivalry.

Weather Warning System

A technology or protocol designed to alert the public of impending severe weather conditions.