What are generally made on the security of buildings and land?

Question

Options

• AFinancial initiatives
• BEstate loans
• CMortgage loans
• DInvestments loans

• A
  3% (1)
• B
  10% (3)
• C
  71% (22)
• D
  16% (5)

Explanation

Mortgage loans (C) are the correct answer because a mortgage is specifically a loan secured against real property - buildings and land serve as collateral, meaning the lender can claim the property if the borrower defaults. This is the defining characteristic of a mortgage.

• A (Financial initiatives) is wrong because this is a broad, vague term referring to programs or strategies, not a specific lending instrument secured by property.
• B (Estate loans) is not a standard financial term; while it sounds property-related, it isn't a recognized loan category based on property security.
• D (Investment loans) are loans used to fund investments generally (stocks, businesses, etc.) and are not tied specifically to real property as collateral.

Memory tip: Think of the word mort (Latin for "death") - a mortgage is a "death pledge," where the debt dies either when it's paid off or when the property is forfeited. Property = mortgage.

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