Loan Capital: Mortgage - SS2 Accounting Past Questions and Answers - page 1
1
What is a mortgage?
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A
A loan used to buy a property
B
A loan used to pay for education
C
A loan used to start a business
D
None of the above
2
What is the role of a mortgage in loan capital?
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A
To provide a way for people to finance the purchase of a property
B
To provide a way for people to pay for education
C
To provide a way for people to start a business
D
None of the above
3
How is the interest rate on a mortgage determined?
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A
By the creditworthiness of the borrower
B
By the length of the loan term
C
By the current market interest rates
D
All of the above
4
What happens if a borrower is unable to make their mortgage payments?
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A
The lender can take possession of the property
B
The lender forgives the debt
C
The borrower must pay a penalty fee
D
None of the above
5
Who typically issues mortgages?
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A
Banks
B
Credit unions
C
Other financial institutions
D
All of the above
6
What is equity in a home, and how is it built?
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7
What is foreclosure, and how does it relate to a mortgage?
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