Question

. Which of the following statements regarding equity is TRUE? (A) The amount of equity an...

. Which of the following statements regarding equity is TRUE?

(A) The amount of equity an investor has in a property may change over time if the property value and loan balance changes

(B) The amount of equity an investor has in a property d epends on the value of the equity the investor has in his or her other investments

(C) The outstanding balance on loan on the property does not affect the amount of equity an investor has in the property

(D) All of the above

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Answer #1

ANS- A is correct , as increase or decrease in property value value have similar effect on the equity value and as well as loan balance decreases than equity value will increase.

Ans - B is incorrect, as equity value of a property own will not depend on any another investment value. It will only depend on the value of property own.

Ans - C is incorrect, as equity investor have in property will also depend on the outstanding loan he have take for the property. As outstanding loan decreases equity value of investor will rise.

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