What are the two categories of benchmark indexes used in adjustable-rate mortgages?
What will be an ideal response?
Two categories of reference rates have been used in adjustable-rate mortgages(ARMs):
(1) market-determined ratesand (2) calculated rates based on the cost of funds for thrifts. Market-determined ratesinclude the London Interbank Offered Rate (LIBOR), the 1-year Constant MaturityTreasury (CMT), and the 12-month Moving Treasury Average (MTA), a rate calculatedfrom monthly averages of the 1-year CMT. The two most popular calculated ratesare the Eleventh Federal Home Loan Bank Board District Cost of Funds Index (COFI)and the National Cost of Funds Index. Depository institutions prefer to hold ARMs intheir portfolios rather than FRMs because ARMs provide a better matching with theirliabilities.
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Indicate whether the statement is true or false
What specific issues do marketing strategies help marketers determine?
A) The goals the marketing plan intends to accomplish B) The marketing objectives of what marketer will accomplish C) The mix of goods or services to fill a customer's needs or wants D) The marketing activities a business will use to achieve marketing goals E) The features that will differentiate a product from competitors