Which of the Following Is True of a Non-Recourse Mortgage

question 2

Multiple Choice

Which of the following is true of a non-recourse mortgage?

• A) The house buyer, if unable to make payments, can lose all possessions
• B) The house buyer has an American style put option on the house
• C) The house buyer has a European style put option on the house
• D) The lender is less likely to lose money on the mortgage

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Definitions:

Lactose

A disaccharide sugar composed of glucose and galactose, found primarily in milk and dairy products.

Lactase

An enzyme that catalyzes the hydrolysis of lactose into glucose and galactose.

Monosaccharides

Simple sugars that constitute the building blocks of more complex carbohydrates.

Hydrolysis

A chemical reaction in which water is used to break down the bonds of a particular substance, such as in the digestion of nutrients.