18
QuizMultiple Choice

Credit, Interest, and Debt

Question 18 • Fall 24 GSE Physical Science B IC

If a borrower cannot pay back a home mortgage, the lender will

Answer
A
require borrowers to save up money and pay cash.
B
not require the borrower to have collateral.
C
take the home as payment.
D
increase the amount of the loan.

Explanation

A home mortgage is a loan secured by the home, which serves as collateral. If the borrower cannot repay, the lender can foreclose and take the home to recover the debt. Therefore, the correct choice is “take the home as payment.”

AI-written and checked against the verified answer.

Previous
Next