Of the Following, Which Is NOT One of the Main

question 79

Multiple Choice

Of the following, which is NOT one of the main elements of ADI lending standards in relation to housing loans in Australia?

• A)All borrowers are required to take out lenders mortgage insurance (LMI).
• B)Loans are made to borrowers who have been assessed as having the capacity to repay.
• C)Loans generally do not exceed 80 per cent of the property's value.
• D)The lender has reliable documentary evidence supporting the borrower's capacity to repay and of the property's value.
• E)Loans are secured.

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Definitions:

Comparative Financial Statements

Financial reports that show the financial position, performance, and cash flows of a company across different periods side by side for comparison.

Accounting Changes

Alterations or updates made to accounting methods, estimates, or reporting entity, which can impact the financial statements of a business.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including the balance sheet and income statement.

Future Value

The estimated value of an investment at a future point in time, based on its current value and expected growth rates over time, often used in financial planning and analysis.