Which of the Following Is Most Accurate About Second Mortgages

question 43

Multiple Choice

Which of the following is most accurate about second mortgages?

• A)Most people have two mortgages on their homes.
• B)The primary mortgage is for the down payment and the secondary mortgage is the main mortgage.
• C)A home equity loan is commonly a second mortgage.
• D)Second mortgages are last resort financing.

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Definitions:

Limited Information

The situation of having insufficient data or knowledge to make fully informed decisions.

Bounded Rationality

A decision strategy that relies on limited information and that reflects time constraints and political considerations.

Bounded Rationality

A theory suggesting that decision-makers are limited by the information they have, their cognitive limitations, and the finite amount of time they have to make a decision.

Time Constraints

The limitations or deadlines imposed on a task or project, influencing its completion.