The Following Is/are Major Source(s)of Home Mortgages

question 36

Multiple Choice

The following is/are major source(s) of home mortgages:

• A) Commercial Banks
• B) Thrift Institutions
• C) Mortgage Bankers and Brokers
• D) Credit Unions
• E) All of the above

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Definitions:

Contractual Agreement

A contractual agreement is a legally binding exchange of promises or an agreement between parties that is enforceable by law.

Accruals

Accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.

Financing

The act of providing funds for business activities, making purchases, or investing, including means such as loans, equity investments, and other financial instruments.

Compensating Balance

A portion of a loan that banks require borrowers to leave in their checking accounts. Effectively increases the bank’s yield. A minimum balance required to compensate banks for their services.