The Federal Housing Administration Implements Its Programs with Which of the Following

question 7

Multiple Choice

The Federal Housing Administration implements its programs with which of the following procedures?

• A) Providing government bonds as collateral for loans
• B) Issuing an insured commitment covering the loan
• C) Funding a portion of each loan at closing
• D) Guaranteeing a portion of each loan

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Definitions:

Cost Method

An accounting technique used to value inventory, usually at the lower of cost or market price, and investments in certain conditions.

Par Value Method

An accounting method used for issuing shares that assigns a nominal value (par value) to the shares, which may affect the accounting treatment of share issues.

Retiring Treasury Stock

The act of permanently removing previously bought-back shares (treasury stocks) from the market, reducing the company's available shares and total equity.