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Andreyy89
4 years ago
7

Mortgages increase the risk faced by homeowners. a. Explain how the mortgage is leverage for the homeowner, and leverage risk. b

. What happens to the homeowner’s risk as the down payment on the house rises from 10 percent to 50 percent? With a down payment of 10 percent, the leverage factor is _________ With a down payment of 50 percent, the leverage factor is _________
Business
1 answer:
Stels [109]4 years ago
3 0

Answer:

Mortgage is leverage for home owner because he owes an amount or is indebted to a lender, therefore mortgage is leverage for the homeowner.

As the down payment rises from 10 percent to 50 percent the risk of the home owner falls as he has less debt.

With a down payment of 10 percent the leverage factor is 9:1 ( Debt over equity, 90/10)

With a down payment of 50 percent the leverage factor is 1:1 (Debt over equity , 50/50)

Explanation:

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The correct answer is "recorded in the current account"

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3 years ago
Suppose you are willing to pay ​$1,000 for a​ low-quality used car and ​$8,000 for a​ high-quality used car. If there is a 60 pe
Kisachek [45]

Answer:

Willing to pay $3,800 for a used car.

Explanation:

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Since both the low quality and high quality are used cars, we can calculate how much to pay for used car by taking weighted average of high quality and low quality used cars, and, assign weights as the probability of getting each car:

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3 0
3 years ago
Which of the following types of promotion includes a two-way conversation?
Nikitich [7]

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Personal selling requires a sale representative to have good interpersonal skills.  The salesperson will point out at the salient features and benefits in a bid to convince the customer that the product will add value to them. The customers seek as much information as they desire and gets the opportunity to negotiate for better prices.

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4 years ago
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Therefore Bonds issued in the names and addresses of their holders are called: Registered bonds.

Learn more about Registered bonds here:brainly.com/question/11882834

7 0
2 years ago
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