Question

1. Which of the following is not true regarding the functions of the department of housing and urban development?

A: enforces numerous federal laws. B: operates mortgage-supportive initiatives. C: distributes millions of dollars in federal grants. D: provides loans to all homebuyers

2. Sandy is shopping for a loan to purchase a lakefront home. she informed one lender that she wants a fully amortizing loan and can make a high monthly payment. furthermore, her payment must apply more money in the early months to the principal. in addition, she wishes to reach free and clear ownership quickly. what fully amortizing loan will the leander suggest to meet sandy loan need?

A: interest-only fixed-rate loan B: initial interest only loan C: straight loan D: 15 years fixed rate loan

3. _______ are debt obligations issued by the U.S. Department of the treasury, and they are considered one of the safest investments because they are backed by the faith and credit of the U.S. Government.

A: U.S. treasury securities. B:Corporate bonds. C: Municipal Securities. D: Revenue bonds.

Answer 1

Part 1:

Answer: The correct option is "provides loans to all home buyers"
Explanation:
Department of housing and urban development is a Federal agency. It deals with housing needs, communities development etc. in the nation. It does not provide loans to all home buyers.

Part 2:

Answer: The correct option is "15 years fixed rate loan".

Explanation:

Interest-only fixed-rate loan: It allows to pay only interest for certain number of years, hence monthly payments will not be high. So, in the early months Sandy won't have the option to pay more money.

Straight loan: In case of straight loan only interests (on the loan) are paid during the payment term, the principal is paid along with the final interest payment. So, only the final payment will be very high but all other payments will be less. In the early months Sandy won't have the option to pay more money.

Initial interest only loan: In this case, only interest payment is required for initial years. So, in the early months Sandy won't have the option to pay more money.

15 years fixed rate loan: Here, the interest rate is fixed throughout the life of the loan, it will also allow Sandy to pay off the principal amount quicker.

Part 3:

Answer: Correct option is "U.S. treasury securities".
Explanation:
U.S. treasury securities will have the full support, faith and credit of the U.S. Government. Hence, the U.S. treasury securities are considered as one of the safest investments.