3
AssignmentMultiple Choice

Buying and Selling Stock

Question 3 • FL-2102373-Personal Finance and Money Management Honors

Which type of contract is a mortgage?

Answer
A
one that requires homeowner's insurance for the borrower
B
one that guarantees the borrower will pay the full purchase price upfront
C
one that allows the lender to take possession of the home immediately
D
one that divides the cost of a home into affordable monthly payments

Explanation

A mortgage is a loan used to buy a home. The borrower repays it over time, usually through monthly payments, so the cost is spread out rather than paid all at once. A mortgage does not let the lender take possession of the home immediately; foreclosure requires specific legal steps if the borrower defaults. The correct choice is D, one that divides the cost of a home into affordable monthly payments.

AI-written and checked against the verified answer.

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