Before the Integration of the Mortgage Market into the Larger

question 5

Multiple Choice

Before the integration of the mortgage market into the larger capital market,rates on residential mortgages relative to bonds were:

• A) generally lower
• B) always lower
• C) relatively higher
• D) about the same

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Definitions:

Apparent Authority

a situation where a person appears to have the authority to act for another, leading a reasonable third party to believe that authority exists.

Real Estate Development

The process of purchasing land, financing real estate deals, building or having buildings constructed, and selling or leasing the finished product to end-users.

Express Authority

Is the specific powers granted by a principal to an agent in a contractual agreement to perform certain actions on behalf of the principal.

Disclosed Principal

In agency law, a principal whose identity is known by the third party at the time the agent makes a contract with the third party.