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snow_tiger [21]
3 years ago
10

A DEBENTURE is defined as a long-term note that is not secured by a specific property. When the lender holds the security so tha

t if the borrower does not pay the promise made in the note they can foreclose on the property, the real estate loan is called:
Social Studies
1 answer:
Aleks [24]3 years ago
8 0

Answer:

The correct answer is a collateralized loan.

Explanation:

A collateral is a type of property or other assets that a lender accepts from the borrower for the purpose of security against a loan. The lender can seize the collateral if the loan is not paid back. The value of collateral must be either equal to more than the loan amount.  

The example given here is an example of a collateralized loan where a real estate property is used as security.  

Other examples of collateral are cars, bank saving deposits, investment accounts.  

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If the FDIC decides that a bank is too big to fail, it will use the ________ method, effectively ensuring that ________ deposito
Murljashka [212]

If the FDIC decides that a bank is too big to fail, it will use the method purchase and assumption, effectively ensuring that no depositors will suffer losses.

Option B

<u>Explanation:</u>

The process by which a healthier bank purchases the assets and assumes the liabilities from a failing or unhealthier bank is known as purchase and assumption method. The liabilities includes all the deposits that are insured. This is the most preferred method to deal with the banks that are failing and is used by the Federal Deposit Insurance Corporation (FDIC).

FDIC provides deposit insurance to the depositors in saving institutions or commercial banks in US. The 1933 Banking Act which was enacted using the Great Depression created the FDIC to re-establish the trust in the banking system of America.

By the purchase and assumption method even if any banks fails, the depositors in that bank will not get affected and they will get paid by the bank that purchases the assets and assumes the liabilities from the failing bank.

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Explanation:

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