Which of the Following Is True of a Deed of Trust

question 2

Multiple Choice

Which of the following is true of a deed of trust?

• A)The creditor may sell the property through an auction without a court order upon default.
• B)The trustee becomes responsible for the payment mortgage upon default.
• C)It conveys title to the property to a disinterested third-party.
• D)The trustee holds the property in trust for the benefit of the debtor.

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Definitions:

Du Pont Identity

A framework for analyzing a company's return on equity (ROE) by breaking it down into three components: operating efficiency, asset use efficiency, and financial leverage.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Price-earnings Ratio

A financial metric comparing the market price of a company's stock to its earnings per share, assisting in determining whether the stock is priced too high or too low.