Professional Documents
Culture Documents
A legal agreement by which a bank or other creditor lends money at interest in exchange for taking
title of the debtor's property, with the condition that the conveyance of title becomes void upon the
payment of the debt.
MORTGAGE
The mortgagor has the legal right to demand the collateral in the event the debtor fails to pay the
obligations stated in the agreement.
FALSE
Bob invested 3,500,000 at 7.5 interest. He just wants to try and make arrangements to start the
investment on January 6, 2016 until May 20, 2016. The fund manager agreed to use exact interest.
How much can Bob expect at the end of the transaction?
3,597,089
The process when banks use securities as collaterals when borrowing from the lender of last resort.
REDISCOUNTING
TRUE
Q
FALSE
A Ponzi scheme is a fraudulent investing scam which generates returns for earlier investors with
money taken from later investors.
TRUE
OBLIGATION
It is the measure of how much you can buy with a unit of currency.
A
PURCHASING POWER
People are able to purchase what they want or even if they lack cash because of __.
A
CREDIT
Q
Hans’ business is slowing down. After much thought, he decided to make a loan from his bank in the
amount of 1,200,000 to make sure he can sustain his business. Date of loan is August 22, 2017 and
matures on March 25, 2018. The bank gave his approximate interest of 8%. How much does he need
to payback excluding the principal?
A
56,800
A
TRUE
A
TRUE
It is a type of loan which is not more than 5 years and less than one year.
A
INTERMEDIATE
INTERMEDIATE CREDIT
On March 1, 2018, Mrs. Campbell realized that her late husband borrowed money from the bank on
October 17, 2017 in the amount of 10,500,000. The bank manager called to inform her that loan is
due on April 8, 2018 at 10.5% using exact interest. How much does she need to pay the bank in total
if the bank manager deducted 2% from the rate.
A
10,923,021
A
BANK
Q
Napoleon borrowed 12,000.00 at the rate of 7.5%. Starting date is September 4, 2017 and ends at
Feb.12, 2018. How much will he need to return to his friend Abram if they agreed to use exact time?
A
12,397
__ is a legal process that allows lenders to recover the amount owed on a defaulted loan by taking
ownership of and selling the mortgaged property.
A
FORECLOSURE
__ is a debt instrument, secured by the collateral of specified real estate property, that the borrower
is obliged to pay back with a predetermined set of payments.
A
MORTGAGE LOAN
MORTGAGE CREDIT
MORTGAGE
MORTGAGE CONTRACT
Mr. Sandoval made a loan for his son’s education. He borrowed 150,000 on May 1, 2018 and
promises the creditor to return the amount on March 31, 2023. His cousin, the creditor, agreed to
use the exact date at the rate of 8.75%. His son, JR, promised his dad to help pay half of it by the
maturity date. How much does Mr. Sandoval need to prepare as payment for the loan he made.
A
107,273