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