Type of financial security in which loans are secured by borrowers' property is classified as__________?
Correct answer: D. Mortgages
- A. Municipal bonds
- B. Corporate bonds
- C. U.S treasury bonds
- D. Mortgages
Explanation
A mortgage is a loan secured by specific property, which the lender may claim if the borrower defaults. Bonds are debt securities, but they are not specifically defined by property collateral in this question.
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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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