Brice Owns a Parcel of Land That Is Encumbered by a Mortgage

question 72

Multiple Choice

Brice owns a parcel of land that is encumbered by a mortgage held by the First National Bank.Brice agrees to sell the land to Paul for $50,000.Brice and Paul together go to the First National Bank to discuss the sale and purchase with the banker.Brice,Paul,and the banker sign an agreement stating that Paul will assume the mortgage and that Brice will be discharged from all further liability on the mortgage.In this case:

• A) the bank is a third party donee beneficiary.
• B) the bank can collect from Brice if Paul defaults.
• C) Brice is a third party beneficiary of the agreement between Paul and the bank.
• D) the agreement among the three is a novation.

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Definitions:

Fiscal and Monetary Policies

Government strategies used to influence economic conditions, with fiscal policy involving taxation and spending decisions and monetary policy concerning the control of the money supply and interest rates.

Private Sector

The sector of the economy operated by private individuals and businesses aiming for profit, without government oversight.

Keynesian Economists

Keynesian economists follow the principles of John Maynard Keynes, advocating for government intervention to moderate economic cycles and promote demand-driven growth.

Economic Instability

A condition characterized by significant fluctuations in economic performance, manifesting in variables such as prices, demand, employment, and GDP.