CTFA

CTFA practice questions, page 31 of 35, with answer review and explanations.

Question 151

__________ refers to failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on the mortgage.

  1. Foreclosure
  2. Default
  3. Amortization
  4. Callable debt

Question 152

The difference between fair market value and current indebtedness is called:

  1. Down payment
  2. Amortization
  3. Equity
  4. Fixed rate mortgage

Question 153

An account held by the lender into which the home buyer pays money for tax or insurance payments.

  1. Entitlement
  2. Deed of trust
  3. Escrow
  4. Earnest money

Question 154

It is a document that gives evidence of an individual's ownership of property. What is it?

  1. Title
  2. Lien
  3. Deed of trust
  4. Escrow

Question 155

Mutual funds let you invest_________.

  1. Invest risk free
  2. Avoid taxes
  3. Profit in any market
  4. Invest in many stocks with relatively little money