Which of the following best describes an adjustable rate mortgage (ARM)?
a. With an ARM, the borrower is protected against the risk that higher inflation will reduce the real loan payments, and so the risk premium part of the interest rate can be correspondingly lower.
b. With an ARM, the borrower is protected against the risk that higher inflation will reduce the real loan payments, and so the risk premium part of the interest rate can be correspondingly higher.
c. With an ARM, the lender is protected against the risk that higher inflation will reduce the real loan payments, and so the risk premium part of the interest rate can be correspondingly lower.
d. With an ARM, the lender is protected against the risk that higher inflation will reduce the real loan payments, and so the risk premium part of the interest rate can be correspondingly higher.
d. With an ARM, the lender is protected against the risk that higher inflation will reduce the real loan payments, and so the risk premium part of the interest rate can be correspondingly higher.
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Answer the following statement(s) true (T) or false (F)
1. As long as labor is not a regressive factor, a higher wage will cause a firm to produce less output in the long run. 2. When labor is a regressive factor, a higher wage rate leads to a reduction in the firm's long-run total costs. 3. If labor is a regressive factor, then a firm's long-run demand for labor may or may not be downward sloping. 4. or a regressive factor the scale effect must be greater than the substitution effect. 5. A competitive firm's demand for labor always slopes down in the short-run but may slope upwards or downwards in the long-run.
How were the initial members of EMU chosen? How will new members be admitted? What is the structure of the complex of financial and political institutions that govern economic policy in the euro zone?
What will be an ideal response?
The two theoretical extremes of the market structure spectrum are occupied at one end by perfect competition and on the other end by monopoly
a. True b. False Indicate whether the statement is true or false
Other things the same, higher population growth
a. raises the amount of physical capital per worker and there is some evidence that it raises the pace of technological progress. b. raises the amount of physical capital per worker, but there is some evidence that it reduces the pace of technological progress. c. reduces the amount of physical capital per worker, but there is some evidence that it raises the pace of technological progress. d. reduces the amount of physical capital per worker and there is some evidence that it reduces the pace of technological progress.