Property Rights and a Strong Titling System Are Seen as Important

question 37

Multiple Choice

Property rights and a strong titling system are seen as important to economic development because they allow:

• A)loans to be taken out against the equity of their assets,increasing investment.
• B)loans to be taken out without risk,increasing the quality,not quantity,of investment.
• C)savers to invest in property and capital.
• D)None of these statements is true.

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Definitions:

Gross Debt Service Ratio

A financial ratio that compares an individual's monthly housing costs (including mortgage payments, property taxes, and utilities) to their gross monthly income, used by lenders to assess borrowing capacity.

Gross Monthly Income

The total amount of income earned in a month before taxes and deductions.

Compounded Monthly

Interest or returns on an investment are calculated and added to the principal amount every month.

Amortized

Refers to the process of paying off debt over time in equal installments of principal and interest.