​ "A" Borrows $50,000

question 8

Multiple Choice

​ "A" borrows $50,000.00 from the bank and pledges real property as security. After the loan, "A" sells the property to "B," who buys subject to the mortgage. "B" then defaults on the mortgage loan. Under the circumstances, which of the following statements are true?

• A) bank may foreclose on the property
• B) bank can sue "A" to recover debt
• C) bank cannot sue "B" to recover debt
• D) "A" cannot sue "B" for reimbursement if "A" pays the bank
• E) all of the above
• F) none of the above

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Definitions:

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Public Relations

The professional maintenance of a favorable public image by a company or other organization or a famous person.

Starch Test

A method used to detect the presence of starch in substances by applying iodine, which turns blue-black in the presence of starch.

Aided Recall

A measure of memory where participants are given cues or prompts to help them remember specific information, typically used in market research.