When the Value of a House Is Less Than the Amount

question 33

Multiple Choice

When the value of a house is less than the amount owed on the house,the borrower:

• A) has negative equity in the house.
• B) is underwater.
• C) must pay any remaining loan balance when the house is sold.
• D) has negative equity,is underwater,and must pay any remaining loan balance when the house is sold.

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Definitions:

Standard Oil

An American oil producing, transporting, refining, and marketing company. Established in 1870, it became the largest oil refiner in the world and was later divided due to antitrust laws.

Domestic Oil Market

The market that deals with the supply, demand, and pricing of oil within a country's borders.

Acquisitions

The act of acquiring control of another company by purchase or exchange of stock.

Greenmail

A situation where a company pays a premium to buy back its own shares from a corporate raider to prevent a hostile takeover.