In Some Cases,lenders Require That Borrowers Obtain Default Insurance

question 29

Multiple Choice

In some cases,lenders require that borrowers obtain default insurance.The purpose of such insurance is to:

• A)Decrease the effective interest rate on the loan
• B)Increase the value of the underlying property
• C)Protect the borrower from defaulting on the loan
• D)Protect the lender from losses associated with borrower default on the loan

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Definitions:

Confidence Interval

A statistical range, with a given probability, that contains the true parameter of interest.

Dependent Variable

The variable in a study or experiment that is expected to change in response to changes in another variable, called the independent variable.

Proficiency Test

An examination designed to measure an individual's competency and skill level in a particular field or subject.

Predictor

A variable used in statistical models to forecast outcomes or trends.