During a Recession, a Homeowner Becomes Significantly Underwater

question 80

Multiple Choice

During a recession, a homeowner becomes significantly underwater. Which of these entities generally escapes harm?

• A) the homeowner
• B) the homeowner's bank
• C) the homeowner's neighbors
• D) None of them. No one escapes harm.

---

Definitions:

Statement

A document that presents an account of particular facts or events in detail.

Liability

Any type of financial debt or obligation that a company or individual owes, which must be settled in the future through the transfer of assets, provision of services, or other forms of payment.

Asset

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest in the company.