1) Commercial and farm mortgages, in which property is pledged as collateral, account for
A) one quarter of borrowing by nonfinancial businesses.
B) one half of borrowing by nonfinancial businesses.
C) one twentieth of borrowing by nonfinancial businesses.
D) two thirds of borrowing by nonfinancial businesses.
2) A ________ is a provision that restricts or specifies certain activities that a borrower can engage in.
A) residual claimant
B) risk hedge
C) restrictive barrier
D) restrictive covenant
3) A clause in a mortgage loan contract requiring the borrower to purchase homeowner”s insurance is an example of a
A) proscriptive covenant.
B) prescriptive covenant.
C) restrictive covenant.
D) constraint imposed covenant.