If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, the homeowners' equity in the home would be approximately
A. $200,000.
B. -$50,000.
C. zero.
D. $50,000.
Answer: B
You might also like to view...
Refer to the scenario above. Which of the following will happen in this case?
A) Neither of them will make any money. B) Only Elly will make money. C) Elly will trust, but her employee will defect. D) Elly will trust, and her employee will cooperate.
When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:
a. a loose monetary policy. b. a contractionary monetary policy. c. a expansionary monetary policy. d. a quantitative easing policy.
The nominal value of GDP is:
a. expressed in monetary values adjusted for inflation b. expressed in monetary values that are not adjusted for inflation. c. expressed in numeric values that does not correlate to a monetary term. d. expressed as a ratio between the value of consumption expenditure and the value of investment expenditure.
If the economy is at full employment,
A) the only unemployment is frictional unemployment plus discouraged workers. B) all unemployment is cyclical and structural. C) real GDP equals potential GDP. D) the entire labor force is employed. E) the entire population is employed