An adjustable-rate mortgage (ARM) is a kind of loan used to purchase a home and for which the interest rate varies or is indexed against the rate of inflation.
Select whether the statement is true or false.
A. True
B. False
A. True
This statement is true. An adjustable-rate mortgage (ARM) is a kind of loan used to purchase a home and for which the interest rate varies or is indexed against the rate of inflation.
You might also like to view...
According to the rational expectations theory, monetary policy is fully anticipated and therefore only affects: a. the level of real GDP
b. the level of real investment. c. the price level. d. the level of real consumption. e. the level of exports.
A shift to a more expansionary monetary policy will
a. increase the long-term growth rate of the economy. b. reduce the future rate of inflation. c. Stimulate output and employment almost immediately. d. Stimulate output and employment, but only after a time lag that is generally long and variable.
From the late 1990s into the early 2000s, Hong Kong suffered from deflation. Most economists believed that the period of deflation ended and that inflation would begin to pick up slowly. Prices, however, were believed to be held in check because the Hong Kong dollar is pegged to the U.S. dollar. What does the monetary authority in Hong Kong have to do to peg its dollar to the U.S. dollar?
A. It will sell Hong Kong dollars when the price of the Hong Kong dollar rises and buy them when the price of the Hong Kong dollar drops. B. It will raise tariffs when the value of the Hong Kong dollar falls and lower them when the value of the Hong Kong dollar rises. C. It does not allow free trade in U.S. dollars; the foreign exchange market is illegal. D. It will sell Hong Kong dollars when the price of the Hong Kong dollar drops and buy them when the price of the Hong Kong dollar rises.
Refer to the table above. If the word price of trousers is $18 per pair, then which of the following statements is true?
A) All the four countries will export trousers. B) All the four countries will import trousers. C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers. D) Country A and Country D will import trousers, whereas Country B and Country C will export trousers.