ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!
  • google app store apple app store
    • тЬЦ

      Question

      Which of the following statements about Mortgage are not

      true? 1. Under a mortgage, the legal ownership of the asset can be transferred to the lender if the borrower defaults on the loan amount 2. The borrower continues to remain in possession of the property 3. A mortgage is usually used for movable assets 4. There is a government guarantee involved always.
      A 1, 2, and 3 Correct Answer Incorrect Answer
      B 2, 3, 4 Correct Answer Incorrect Answer
      C only 4 Correct Answer Incorrect Answer
      D only 3 and 4 Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Under a mortgage, the legal ownership of the asset can be transferred to the lender if the borrower defaults on the loan amount. However, the borrower continues to remain in possession of the property. A mortgage is usually used for immovable assets (example: house, land, building, or any property which is permanently fixed to the earth or attached to the land). Home loans classify as mortgages. They are given against a collateral and no guarantee is taken

      Practice Next
      More Financial Management Questions

      Relevant for Exams:

      ask-question