Finance

10 cards   |   Total Attempts: 188
  

Cards In This Set

Front Back
The original principal amount of a mortgage loan is the:
Amount of the lender's investment
One way an investor can minimize the likelihood of suffering serious losses on her investments is to:
  1. maintain a diversified portfolio
Which of the following are debt investments
  1. Bonds
A lender receives a return on a mortgage loan in the form of:
  1. interest
. Jenny has saved up $4,000 over the past year, and she'd like to invest the money. She's uncertain about the stability of her job, however, and she wants quick access to her money in the event that she's laid off. Jenny is primarily concerned about:
  1. liquidity
Mortgage loans are pooled together and sold on the secondary market as:
  1. mortgage-backed securities
. Gina bought her house 5 years ago for $250,000 and has made no improvements. She's decided to move to the country, so she puts the house up for sale. Todd buys it for $375,000. Gina's profit on the sale is the result of:
  1. appreciation
Which of these types of investments is the most illiquid
  1. Real estate
. The face amount of a bond is the:
  1. value of the bond at maturity
To protect the yields they expect from their loans, mortgage lenders sometimes charge a penalty for:
  1. prepayment