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ladessa [460]
4 years ago
13

Unlike a traditional mortgage, an ARM _____.

Business
2 answers:
Yuliya22 [10]4 years ago
6 0

Answer:

has an interest rate that can change every year.

Explanation:

An adjustable-rate mortgage (ARM) usually starts with a lower interest rate than a regular mortgage, but that low interest rate can last for month, maybe a year or even a few years, but later it tends to fluctuate as the market interest rates change. Remember 2007, when the monthly payments of ARMs skyrocketed and foreclosures multiplied around the country?

The main advantage of fixed-rate mortgages (traditional mortgages) is that the interest rate is fixed and that helps families to plan their finances over the long run. You must remember that a mortgage loan takes a lot of years to be paid (between 20-30 years), and a lot of things happen during those years.

aksik [14]4 years ago
3 0
Unlike a traditional mortgage, an ARM <span>has an interest rate that can change every year. The correct option among all the options that are given in the question is the second option. The other options in the question can be negated. I hope that the answer has actually come to your help.</span>
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Creating policies for health and safety is part of which risk management strategy?
ivolga24 [154]
It can be C because it's accepting the risk to do it

But it can also be B because it's sharing the risk with everyone else
8 0
3 years ago
Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% f
Natasha2012 [34]

Answer:

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

Explanation:

Step 1 of 2

Calculate the amount of factoring fee.

Factoring fee = 5% ×Account Receivable

=5%×$75,000

=$3,750

​

Step 2 of 2. Journey record. Image attached.

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

4 0
4 years ago
M1 and M2 are two definitions of the money supply.
Alex787 [66]

Answer: Please refer to Explanation

Explanation:

M1 is the narrowest definition of money supply. It refers to the most liquid or instruments and includes actual currency as well as money in checking accounts.

M2 is the next type of of money. It includes EVERYTHING in M1 and then also includes savings deposits, time deposits, and money market funds.

Now,

Classifying the above will go as,

Gold - Neither M1 or M2

Traveler's check - M1 and M2

Balance in savings accounts - M2 only

Money market account balance - M2 only

Credit cards - Neither M1 or M2

Common stock - Neither M1 or M2

Certificates of deposit - M2 only

Currency - M1 and M2

Balance in Checking accounts - M1 and M2

It is worthy of note that there is no M1 only. This is because as stated in the definition, all M1s are in M2.

5 0
3 years ago
Why are short sentences and short paragraphs appropriate for business communication?
motikmotik

Answer:

Objs. 4 For business communications it is essential to express ideas and facts eloquently. The shorter the sentences and paragraph are, the brief the letter, memo or notice. This will save the reader's and writer's time.

3 0
3 years ago
The Bureau of Labor Statistics reported the consumer price index as 229.6 in December 2012, and 246.5 in December 2017. By what
slega [8]

Answer:7.4%

Explanation: In December 2017, the CPI stood at 246.5 up from 229.6 in December 2012. This is a 7.4% increase [(246.5-229.6) /229.6] *100=7.4

4 0
3 years ago
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