Which of the Following Observations Concerning Mortgages Is NOT Valid

question 81

Multiple Choice

Which of the following observations concerning mortgages is NOT valid?

• A)They may refer to loans secured by lien on residential houses.
• B)They are a minor component in finance company portfolios.
• C)Mortgage-backed securities are created by securitization.
• D)Home equity loans are examples of second mortgages.
• E)The interest on a mortgage loan secured by a primary residence is not tax deductible to the homeowner.

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Definitions:

Concrete Operational

A stage in cognitive development where children gain the ability to think logically about concrete events and understand conservation.

Piaget

A Swiss psychologist famous for his theories on cognitive development in children, positing that children move through distinct stages of intellectual growth.

Intrinsic Rewards

Personal satisfaction or enjoyment derived from accomplishing a task or learning new skills, unrelated to external rewards.

External Approval

Seeking validation or acceptance from others, rather than valuing one's own judgement and feelings.