The primary mortgages involve ____________?
Correct answer: B. single investor
- A. three institutions
- B. single investor
- C. multiple investor
- D. multiple institutions
Explanation
A primary mortgage is typically originated directly between one borrower and one lending institution or investor. Secondary mortgages involve the resale or pooling of claims among multiple investors, making “single investor” the intended contrast.
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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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