A danger that an adjustable-rate mortgage poses to a buyer is
a. higher payments if interest rates increase.
b. a longer payment period if interest rates increase.
c. that the margin will increase.
d. none of these.
Answer: a. higher payments if interest rates increase.
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Which of the following statements is (are) true with regard to probability analysis?
I. If two events are independent, the occurrence of one event does not affect the occurrence of the second event. II. If two events are dependent, the occurrence of one event affects the occurrence of the second event. A) I only B) II only C) both I and II D) neither I nor II
If you want to borrow money from the cash value of your whole life policy, the interest rates are relatively high and the terms of the loan are quite strict
Indicate whether the statement is true or false.