Gina would like to buy a house. She will pay 10 percent of the cost of the house as a down payment and borrow the other 90 percent from a mortgage lender. The home will serve as collateral for the loan
The lender will not make the loan to Gina unless the home is insured. Using insurance to secure the collateral for a loan illustrates which of the following benefits of insurance to society?
A) enhancement of credit
B) reduction of fear and worry
C) source of investment funds
D) incentives for loss prevention
Answer: A
You might also like to view...
In Sweden, where the government controls two-thirds of all expenditures, resource allocation is more "market" oriented than "command" oriented
Indicate whether the statement is true or false
Store design is a component of the
A. organizational mix. B. pricing mix. C. product mix. D. retail mix. E. wholesale mix.
The credit portion of the adjusting entry to enter the estimate for uncollectible accounts is made directly to a specific receivable account
Indicate whether the statement is true or false
MacKenzie Company sold $180 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 4% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:
A. Debit Accounts Receivable-Regional $172.80; debit Credit Card Expense $7.20 and credit Sales $180. B. Debit Cash $172.80; debit Credit Card Expense $7.20 and credit Sales $180. C. Debit Cash of $180 and credit Sales $180. D. Debit Cash of $180 and credit Accounts Receivable-Regional $180. E. Debit Cash $172.80 and credit Sales $172.80.