Reference no: EM132966074

Problem 1: A second mortgage is:

Select one:

a. A loan you take out to buy your second house.
b. A second loan that ranks below the first mortgage in priority of repayment.
c. Cheaper (lower interest rate) than a first mortgage.
d. A good idea if your firm is in financial difficulty.
e. None of the above

Problem 2: As a loan officer, if you were assessing the collateral that was part of a loan proposal you would be interested in:

Select one:

a. The income statement of the borrowing firm.
b. The firm's spending on luxury goods and expensive travel.
c. The credit rating report of the firm.
d. The marketability and price stability of the relevant asset(s).
e. None of the above