Which One of the Following Statements Correctly Applies to an Unseasoned

question 12

Multiple Choice

Which one of the following statements correctly applies to an unseasoned mortgage?

• A)The mortgage is less than 30 months old.
• B)The mortgage is still held by the original mortgage company.
• C)The mortgage has at least one term or provision that is uncommon to most mortgages.
• D)The mortgage has an adjustable interest rate that has not been adjusted to date.
• E)The mortgage was obtained by a first-time home owner.

---

Definitions:

Withdrawals

Money or assets taken out of a business by its owner(s) for personal use.

Owner's Equity

The ownership stake of shareholders or owners in a company's assets once all debts have been subtracted.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.

Capital Account

An account on the balance sheet representing the original investment by the owners plus any retained earnings.