What type of mortgage allowed borrowers to only pay interest accrued on the mortgage without ever paying off the principle?
A) subprime
B) prime
C) adjustable
D) option ARM
E) fixed
Answer: D
Explanation: The option ARM, lets people choose to pay only the interest on their loans every month (which meant they would never pay off the principle) or even less than the interest (which meant the amount they owed increased every month).
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The Securities Act of 1933 provides an exemption from registration for offers and sales of securities made only to accredited investors. Federal securities laws and regulations are violated if the exemption is claimed and
A. Offers and sales are made to more than 100 accredited investors. B. Resale of the securities is restricted. C. The SEC is not informed of exempt sales. D. No information is given to investors.
What is the importance of registering a deed?
A) Registration is required to prevent adverse possession B) Registration is deemed to constitute notice to the public of the interest of the person registering. C) If a deed is not registered, the land will be forfeited to the crown D) Registration creates an estate in the land E) All of the above