Choose the One Most Appropriate Answer for Each

question 41

Multiple Choice

Choose the one most appropriate answer for each.
-money that accompanies an offer to purchase as evidence of good faith

• A)"as is"
• B)bill of sale
• C)binder
• D)closing date
• E)delayed exchange
• F)dry rot
• G)earnest money deposit
• H)equitable title
• I)installment contract
• J)lease-option
• K)letter of intent
• L)loan commitment
• M)optionee
• N)option fee
• O)prorating
• P)purchase contract
• Q)qualified intermediary
• R)right of first refusal
• S)"time is of the essence"
• T)vendee

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Definitions:

Volcker Rule

Part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts U.S. banks from making certain kinds of speculative investments that do not benefit their customers.

Proprietary Trading

When a firm trades stocks, bonds, currencies, commodities, derivatives, or other financial instruments with its own money, rather than its clients' money, for its own profit.

Hedge Funds

Investment funds that use various strategies to earn active returns for their investors, often employing leverage and derivatives.

Mortgage Market Meltdown

A significant downturn in the mortgage market, often resulting from a large number of loan defaults and the devaluation of mortgage-backed securities.