In an ARM loan, the distance between the borrower's rate and the index is called the:

a. cap
b. adjustment
c. margin
d. teaser

Answer: c. margin

Business

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Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5

Lovely Skin is using a ________ approach to price the new moisturizer. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

Business

Which of the following is NOT a network flow model?

A) Transportation model B) Assignment model C) Product mix model D) Shortest-path model E) Minimal-spanning tree model

Business