21. Interest rates are a measure of the O (a) cost of money. O (b) demand for money. O (c) supply of money. O (d) value of money. 22. The maximum allowable mortgage for an FHA loan O (a) depends on the interest rate. (b) is $108,750. O (c) is set by the lender. O (d) varies by county. 23. The Federal National Mortgage Association is (a) able to purchase only FHA and VA loans. O (b) designed to increase the availability of money to primary lenders. O (C) owned and operated by the federal government. (d) owned and operated by the Federal Reserve. 24. Which is a voluntary lien? O (a) assessments O (b) mechanic's lien O (c) mortgage 0 (d) property 25. Ann makes a 20% down payment on her $85,000 purchase. Her loan amount is O (a) $17,000. O (b) $20,000. O (c) $68,000. O (d) $85,000. 26. The Government National Mortgage Association is O (a) also known as Ginnie Mae. O (b) the largest buyer of conventional loans in the market. O (c) a private corporation. 0 (d) under the direction of Fannie Mae. 27. RESPA applies to all O (a) business loans with collateral. O (b) commercial real estate loans only. O (C) real estate credit transactions for one-to four-dwelling units. O (d) real estate purchase transactions. 28. With a fixed-rate loan, O (a) assumptions must be allowed. (b) interest rate may increase if the index goes up. O (C) a lender may increase the interest rate if the borrower misses two payments in a year. (d) principal and interest payments must remain constant. 29. The term used when a loan balance grows due to deferred interest is O (a) disintermediation. O (b) hypothecation. O (c) interest only. O (d) negative amortization. 30. RESPA does NOT prohibit and/or place limits on O (a) the amount paid for origination fees. O (b) the "cushion" of the borrower's prepaid items that a lender may hold in escrow. O (c) kickbacks. O (d) the length of time for delivery of required information to the applicant/borrower