The ownership of mortgaged property will be transferred to financial institution if the ____________?
Correct answer: A. borrower defaults
- A. borrower defaults
- B. borrower does not default
- C. borrower want less rate
- D. borrower want profitInvesting
Explanation
When a borrower defaults, the lender may enforce its security interest through foreclosure and take ownership or possession of the mortgaged property. The property is not transferred merely because the borrower seeks a lower rate or wants a profit.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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