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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

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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

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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AntheaProfessional · Tutor for 6 years

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(1) and (3)

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## Step1:<br />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.<br /><br />## Step2:<br />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.<br /><br />## Step3:<br />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.<br /><br />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. <br /><br />Therefore, the correct option is "(1) and (3)".
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