The Payment of a Liability

question 49

Multiple Choice

The payment of a liability

• A)decreases assets and shareholders' equity.
• B)increases assets and decreases liabilities.
• C)decreases assets and increases liabilities.
• D)decreases assets and liabilities.

---

Definitions:

Mortgage-Backed Securities

Financial instruments secured by a pool of mortgage loans, whose cash flows are passed through to investors.

Monthly Interest

Interest calculated or paid on a debt or investment on a monthly basis.

Homogeneous Pools

Groups of assets or securities that are similar in nature, making them easier to analyze collectively.

Cryptocurrency

A type of digital or virtual currency that uses cryptography for security and operates independently of a central bank.