If One of the Terms of an ARM Read,interest Is

question 18

Multiple Choice

If one of the terms of an ARM read,interest is capped at 2%/5%,what would that mean?

• A)The borrower can choose the cap he wants by simply circling the appropriate choice
• B)The interest rate has a 2% annual cap rate and a 5% lifetime cap rate
• C)The interest rate has a 5% annual cap rate and a 2% lifetime cap rate
• D)The interest rate has a 2% annual cap rate and a 5% floor cap rate

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Definitions:

Return the Goods

The process of a buyer sending previously purchased products back to the seller, usually under conditions specified in the return policy.

Section 2-608

A provision within the Uniform Commercial Code that allows buyers to revoke acceptance of goods under certain conditions if the goods fail to conform substantially to the contract.

Right to Revoke

The legal ability to cancel or withdraw from a contract or agreement within a certain period of time.

Sales Contracts

Legal agreements between buyers and sellers detailing the terms and conditions of a sale, including price, delivery, and product specifications.