A deed of trust with an unpaid balance of $50,000 was sold to an investor for $40,000. This would be known as:
A. liquidation
B. hypothecation
C. discounting
D. leverage
Answer: C. discounting
Explanation: When a deed of trust is sold on the secondary market for less than its face value, that is known as discounting.
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If the value of a vehicle is increased after repairs, such as repainting an entire auto when only one fender or door is damaged, the insurer will not pay for the increase in value. Another name for the increase in value is
A) diminution. B) betterment. C) appraisal. D) subrogation.
Which of the following statements about the characteristics of current no-fault laws is true?
A) Most laws in force today are pure no-fault laws. B) Most laws apply to both bodily injury and property damage. C) Most laws permit payment of survivor benefits to a surviving spouse and children. D) States with add-on plans restrict the right of accident victims to sue negligent drivers.