Janet Is Considering the Purchase of a Condo for $150,000

question 25

Multiple Choice

Janet is considering the purchase of a condo for $150,000 during a recession phase, partly financed by a mortgage. She is due to retire in a few years. If she cannot make her mortgage payments on time, she is bound to incur a:

• A) neutral equity on her property.
• B) reduced residual value of the property.
• C) loan-to-value ratio .
• D) foreclosure of her house.
• E) fine from the local government.

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Definitions:

Flash Memory

A type of non-volatile memory that holds data when the power is off.

Mounted

Refers to the status of a storage device when it is accessible to the operating system after being connected or inserted.

Operating System

The software that supports a computer's basic functions, such as scheduling tasks, executing applications, and controlling peripherals.

BIOS

Basic Input/Output System, a software stored on a small memory chip on the motherboard, responsible for booting the computer and managing data flow between the computer's operating system and attached devices.