Which of the following would usually be true concerning a hard money second trust deed:
A: It always has lower than normal rates;
B: It is secured by real estate and given to a third party to obtain a cash loan;
C: It is carried back by a conventional lender;
D: It is always repayable in three years.
Answer: B: It is secured by real estate and given to a third party to obtain a cash loan;
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If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?
a. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. b. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. c. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. d. There would be no effect on the accounts because the accounts are affected by the same amount. e. None of these.
Financial ________ is a general term which relates to an organization's cash reserves and borrowing power
A. Solvency B. Liquidity C. Current assets D. Capacity E. Efficiency