Question 16 Which of the following statement(s) is/are true? (Select the correct answer from the options below the statements) (1) A mortgage is a form of long-term loan that is secured on an asset, typically land and property (2) A mortgage is a form of equity and is attached to non-current assets, typically land and property (3) A mortgage may be for a long period: 20 years or more (1) and (3) (1) only (1) and (2) (2) and (3) - Previous

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Question 16 Which of the following statement(s) is/are true? (Select the correct answer from the options below the statements) (1) A mortgage is a form of long-term loan that is secured on an asset, typically land and property (2) A mortgage is a form of equity and is attached to non-current assets, typically land and property (3) A mortgage may be for a long period: 20 years or more (1) and (3) (1) only (1) and (2) (2) and (3) - Previous

Answer 1

(1) and (3)

Answer 2

## Step1:According to the definition of a mortgage loan, a mortgage is indeed a long-term loan that is secured by an asset, typically land and property. Hence, statement (1) is correct.## Step2:A mortgage is a type of debt, and it is different from equity. Although it is attached to an asset, it is not a form of equity. So, statement (2) is incorrect.## Step3:A mortgage loan can indeed extend for a long period, usually up to 20 years or more in many countries. Hence, statement (3) is accurate.From reviewing the options listed, we can observe that only Options (1) and (3) are true. Thus, the solution should accurately show this determinative alignment. Therefore, the correct option is "(1) and (3)".

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