Which of the Following Is False with Regard to the Nature

question 99

Multiple Choice

Which of the following is false with regard to the nature of mortgages?

• A)A second mortgage is referred to as an equitable mortgage because it is the equity of redemption that is transferred to the mortgagee as security.
• B)The land titles system of land registration provides that the mortgagee does not show up as the registered owner on the state of title certificate but merely as the holder of a charge against the property.
• C)In the event of default,the first mortgagee must wait until the end of the redemption period to ask the court to make the foreclosure absolute if payment has not been made.
• D)In the case of default,the property cannot be sold by a second mortgagee until the end of the redemption period.
• E)Unlike an agreement for sale,under which an owner retains title to his property until the purchaser makes all payments,a mortgage is a document by which the owner conveys title to a lender.

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Definitions:

Inflation Adjustments

Modifications made to financial statements or figures to account for the effects of inflation, ensuring values are represented in consistent purchasing power.

Liquidity Risk

The risk that an asset cannot be sold or converted into cash quickly enough to meet short-term financial obligations without a significant loss in value.

Bond

A fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental) which pays periodic interest payments and the return of the principal at maturity.

Risk Premiums

The extra return or premium demanded by investors for holding riskier assets, above the risk-free rate.