An Adjustable Rate Mortgage Originator Is Adversely Affected by ________

question 22

Multiple Choice

An adjustable rate mortgage originator is adversely affected by ________ interest rates while the borrower is adversely affected by ________ interest rates.

• A)increasing; decreasing
• B)increasing; increasing
• C)decreasing; decreasing
• D)decreasing; increasing
• E)stable; decreasing

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Definitions:

Habituation

The process by which an individual becomes accustomed to a stimulus and reacts less strongly over time.

Perceptual Constancy

Perceiving objects as maintaining their identity although sensations from them change as their positions change.

Perceptual Constancy

The brain's ability to perceive objects as unchanging (having consistent shape, size, and color) despite changes in perspective, distance, and lighting.

Size Constancy

The perceptual stability of the size of objects in the world, perceiving them as having a constant size, despite changes in the distance from which they are viewed.