1、2. Which of the following are important ways in which mortgage markets differ from stock and bond markets?(a) The usual borrowers in capital markets are government entities, whereas the usual borrowers in mortgage markets are small businesses.(b) The usual borrowers in capital markets are government
2、 entities and large businesses, whereas the usual borrowers in mortgage markets are small businesses.(c) The usual borrowers in capital markets are government entities and large businesses, whereas the usual borrowers in mortgage markets are small businesses and individuals.(d) The usual borrowers i
3、n capital markets are businesses and government entities, whereas the usual borrowers in mortgage markets are individuals.3. Which of the following are true of mortgages?(a) A mortgage is a long-term loan secured by real estate.(b) A borrower pays off a mortgage in a combination of principal and int
4、erest payments that result in full payment of the debt by maturity.(c) Over 80 percent of mortgage loans finance residential home purchases.(d) All of the above are true of mortgages.(e) Only (a) and (b) of the above are true of mortgages.4. Which of the following are true of mortgages?(b) Borrowers
5、 pay off mortgages over time in some combination of principal and interest payments that result in full payment of the debt by maturity.(c) Less than 65 percent of mortgage loans finance residential home purchases. E5. Which of the following are true of mortgages?(a) Prior to the 1920s, U.S. banking
6、 legislation discouraged mortgage lending by banks.(b) In the 1920s, most mortgages were balloon loans, which required the borrower to pay the entire loan amount after three to five years.(c) Because mortgages are long-term loans secured by real estate, mortgage lenders tended to fail when land pric
7、es declined, as was often the case during economic recessions.(d) All of the above are true.(e) Only (a) and (b) of the above are true.6. Which of the following is true of mortgage interest rates?(a) Interest rates on mortgage loans are determined by three factors: current long-term market rates, th
8、e term of the mortgage, and the number of discount points paid.(b) Mortgage interest rates tend to track along with Treasury bond rates.(c) The interest rate on 15-year mortgages is lower than the rate on 30-year mortgages, all elsethe same.7. Which of the following are true of mortgages?(a) More th
9、an 80 percent of mortgage loans finance residential home purchases.(b) The National Banking Act of 1863 rewarded banks that increased mortgage lending.(c) Most mortgages during the 1920s and 1930s were balloon loans.(e) Only (a) and (c) of the above are true.8. Which of the following is true of mort
10、gage interest rates?(a) Longer-term mortgages have lower interest rates than shorter-term mortgages.(b) Mortgage rates are lower than Treasury bond rates, because of the tax-deductibility of mortgage interest rates.(c) In exchange for points, lenders reduce interest rates on mortgage loans. C9. Typi
11、cally, discount points should not be paid if the borrower will pay off the loan in _ years or less.(a) 5(b) 10(c) 15(d) 20 A10. Which of the following is true of mortgage interest rates?(a) Longer-term mortgages have higher interest rates than shorter-term mortgages.(b) In exchange for points, lende
12、rs reduce interest rates on mortgage loans.(c) Mortgage rates are lower than Treasury bond rates because of the tax deductibility of mortgage interest payments.11. Which of the following reduces moral hazard for the mortgage borrower?(a) Collateral(b) Down payments(c) Private mortgage insurance(d) B
13、orrower qualifications B12. Which of the following protects the mortgage lenders right to sell property if the underlying loan defaults?(a) A lien(b) A down payment(d) Borrower qualification(e) Amortization13. Which of the following is true of mortgage interest rates?(a) Mortgage rates are closely t
14、ied to Treasury bond rates, but mortgage rates tend to stay below Treasury rates because mortgages are secured with collateral.(b) Longer-term mortgages have higher interest rates than shorter-term mortgages.(c) Interest rates are higher on mortgage loans on which lenders charge points.14. During th
15、e early years of an amortizing mortgage loan, the lender applies(a) most of the monthly payment to the outstanding principal balance.(b) all of the monthly payment to the outstanding principal balance.(c) most of the monthly payment to interest on the loan.(d) all of the monthly payment to interest
16、on the loan.(e) the monthly payment equally to interest on the loan and the outstanding principal balance.15. During the last years of an amortizing mortgage loan, the lender applies16. During the last years of a balloon mortgage loan, the lender applies17. During the early years of a balloon mortga
17、ge loan, the lender applies18. A borrower who qualifies for an FHA or VA loan enjoys the advantage that(a) the mortgage payment is much lower.(b) only a very low or zero down payment is required.(c) the cost of private mortgage insurance is lower.(d) the government holds the lien on the property.19.
18、 (I) Conventional mortgages are originated by private lending institutions, and FHA or VA loans are originated by the government. (II) Conventional mortgages are insured by private companies, and FHA or VA loans are insured by the government.(a) (I) is true, (II) is false.(b) (I) is false, (II) is t
19、rue.(c) Both are true.(d) Both are false.20. Borrowers tend to prefer _ to _, whereas lenders prefer _(a) fixed-rate loans; ARMs; fixed-rate loans.(b) ARMs; fixed-rate loans;(c) fixed-rate loans; ARMs.(d) ARMs;21. (I) ARMs offer lower initial rates and the rate may fall during the life of the loan.
20、(II) Conventional mortgages do not allow a borrower to take advantage of falling interest rates.22. Growing-equity mortgages (GEMs)(a) help the borrower pay off the loan in a shorter time.(b) have such low payments in the first few years that the principal balance increases.(c) offer borrowers payme
21、nts that are initially lower than the payments on a conventional mortgage.(d) do all of the above.(e) do only (a) and (b) of the above.23. A borrower with a 30-year loan can create a GEM by(a) simply increasing the monthly payments beyond what is required and designating that the excess be applied e
22、ntirely to the principal.(b) converting his ARM into a conventional mortgage.(c) converting his conventional mortgage into an ARM.(d) converting his conventional mortgage into a GPM.24. Which of the following are useful for home buyers who expect their income to rise in the future?(a) GPMs(b) RAMs(c
23、) GEMs(d) (a) and (b)(e) (a) and (c)25. Which of the following are useful for home buyers who expect their income to fall in the future?26. Retired people can live on the equity they have in their homes by using a(a) GEM.(b) GPM.(c) SAM.(d) RAM.27. Second mortgages serve the following purposes:(a) they give borrowers a way to use the equity they have i
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