Which of the Following Are True of Mortgages

question 20

Multiple Choice

Which of the following are true of mortgages?

• A) A mortgage is a long-term loan secured by real estate.
• B) A borrower pays off a mortgage in a combination of principal and interest payments that result in full payment of the debt by maturity.
• C) Over 80 percent of mortgage loans finance residential home purchases.
• D) All of the above are true of mortgages.
• E) Only A and B of the above are true of mortgages.

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Definitions:

Profit-Maximizing Firms

Companies that operate with the goal of making the highest possible profit from their activities.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Downward-Sloping Demand

A concept in economics that illustrates how demand for a good or service decreases as the price increases, assuming all other factors remain constant.

Monopoly

A monopoly is a market structure characterized by a single seller dominating the market, facing no competition, which can influence prices and control the supply of goods or services.