Which of the following statements is false?
A)During the past couple of decades,generally high fixed-rate mortgage loan interest rates and the desire to extend housing ownership to more individuals in the U.S. ,the use of adjustable-rate mortgages grew in usage.
B)An adjustable-rate mortgage (ARM)has an interest rate that changes or varies over time as set by the Federal Reserve.
C)The interest rate on an ARM is often adjusted annually to reflect changes in treasury bill rates (or other interest rate benchmark).
D)Lenders typically offer ARMs with variable interest rates for one to five years with a provision to switch to a fixed-rate over the remaining life of the ARM.
E)all of the above statements are true

Question

Quizplus · Accepted Answer

An adjustable-rate mortgage (ARM) interest rate is not set by the Federal Reserve but instead is determined by the lender based on a specific interest rate index such as the prime rate, LIBOR, or Treasury bills.

Which of the Following Statements Is False