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Name: Homework 12

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Instructions:  

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Question 1   Multiple Choice (1.0000 points)
  Question: Home equity loans greatly increased in popularity because
 
    home values began to decline.
other types of loans became unavailable.
many S & L's went out of business.
they were easier to obtain than consumer loans.
interest on consumer loans lost their tax deductibility.
 

 
Question 2   Multiple Choice (1.0000 points)
  Question: If an investment is worth $400,000 after ten years at an annual compound growth rate of 4%, what was the original investment? (to the nearest $1000)
 
    $252,000
$286,000
$270,000
$265,000
 

 
Question 3   Multiple Choice (1.0000 points)
  Question: In general, a promissory note
I. may be sold by the lender to a third party
II. is a negotiable instrument
 
    I only
II only
both I and II
neither I nor II
 

 
Question 4   Multiple Choice (1.0000 points)
  Question: Operating primarily in the northeastern part of the United States are the:
 
    commercial banks
life insurance companies
savings and loan associations
mutual savings banks
none of the above
 

 
Question 5   Multiple Choice (1.0000 points)
  Question: Real estate financing:
 
    is usually accomplished by mortgages
usually entails pledging of collateral security
is usually short term in nature
all of the above
a and b only