International Finance And Treasury - Study Mode

[#526] Commercial mortgages, farm mortgages and home mortgages are categories of
Correct Answer

(D) primary mortgagees

Explanation

Solution: Commercial mortgages, farm mortgages and home mortgages are categories of primary mortgagees. A mortgagee is an entity that lends money to a borrower for the purpose of purchasing real estate. In a mortgage lending deal the lender serves as the mortgagee and the borrower is known as the mortgagor.

[#527] Primary mortgages involves
Correct Answer

(B) single investor

Explanation

Solution: Primary mortgages involves single investor. The primary mortgage market is where loans are first created. It's where borrowers seek to hook up with mortgage originators to conclude a mortgage loan for the purchase of a home or other type of real estate.

[#528] Ownership of mortgaged property will be transferred to financial institution if
Correct Answer

(A) borrower defaults

Explanation

Solution: Ownership of mortgaged property will be transferred to financial institution if borrower defaults. The mortgaged property can be transferred/inherited only with the written consent of the lender. This means that if a person passes away while the home loan was still running on the property that has to be bequeathed, the beneficiary (spouse, or children of the deceased) will have to pay the outstanding loan.

[#529] Loan which is made available for businesses or individuals to buy land, home or other property is classified as
Correct Answer

(C) mortgages

Explanation

Solution: Loan which is made available for businesses or individuals to buy land, home or other property is classified as mortgages. A mortgage is a loan from a bank or a financial institution that helps the borrower purchase a house. A mortgage is secured by the home itself, so if the borrower defaults on the loan, the bank can sell the home and recoup its losses.

[#530] Convertibility of a currency is indicated by its
Correct Answer

(C) Conversion at market rate without any quantitative restriction by government

Explanation

Solution: Convertibility of a currency is indicated by its conversion at market rate without any quantitative restriction by government. Currency convertibility is important for international commerce as globally sourced goods must be paid for in an agreed upon currency that may not be the buyer's domestic currency.