Question

which of the following is the typical amount of time in which a borrower must pay off a mortgage loan?

a. five (5) years

b. eight (8) years

c. thirty (30) years

d. fifty (50) years

which of the following investments is characterized by the following traits:

risky

ownership in a corporation

pays dividends

potential for reward is high

a. stocks

b. bonds

Explanation:

First Question (Mortgage Loan Term)

Mortgage loans typically have long - term repayment periods. Among common mortgage terms, 30 years is a very typical duration. 5 and 8 years are too short for a mortgage, and 50 years is less common as a standard mortgage term.

Stocks represent ownership in a corporation. They are risky investments with a high potential for reward, and corporations may pay dividends to stockholders. Bonds are debt instruments, not ownership stakes, and have different risk - reward and payment characteristics.

Answer:

c. Thirty (30) years

Second Question (Investment Traits)