Vidyalelo
Management · Q671

International Finance and Treasury

Graduate and Post Graduate · Management · question 671

Q671

Mortgages used to purchase townhouses and apartment complexes are classified as

A.
multi mortgage
B.
multifamily dwelling mortgages
Answer
C.
sovereign dwelling mortgages
D.
primary dwelling mortgages

Answer: Option B

Solution

Answer: Option B
Solution:
Mortgages used to purchase townhouses and apartment complexes are classified as multifamily dwelling mortgages. A mortgage is a loan from a bank or a financial institution that helps the borrower purchase a house. A mortgage is secured by the home itself, so if the borrower defaults on the loan, the bank can sell the home and recoup its losses.