A Clause That States That in the Event of a Default

question 51

Multiple Choice

A clause that states that in the event of a default, the whole amount of the principal of the mortgage, plus accrued interest immediately falls due is

• A) an acceleration clause.
• B) a demand payment clause.
• C) a payment clause.
• D) an immediate payment clause.
• E) a quick payment clause.

---

Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Normal Profits

The level of profit that is necessary for a company to remain competitive in the market, often seen as the minimum acceptable return.

Short Run

Refers to a period in economics where certain inputs or resources are fixed and cannot be changed, contrasting with the long run where all factors are variable.

Long Run

A period in which all factors of production and costs are variable, allowing for adjustment to changes in the market or economy.