Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following actions is completed by the secondary mortgage market?

Appraising real estate properties for loan approval

Collecting monthly mortgage payments from borrowers

Originating new mortgage loans directly to homebuyers

Purchasing existing mortgages from primary lenders and selling them to investors

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Verified step by step guidance

Understand the concept of the secondary mortgage market: It is a marketplace where existing mortgages are bought and sold by financial institutions, investors, and government agencies. This allows primary lenders to free up capital to issue new loans.

Clarify the role of primary lenders: Primary lenders are responsible for originating new mortgage loans directly to homebuyers. They assess borrowers' creditworthiness and approve loans based on their financial profiles.

Differentiate the secondary mortgage market from primary lenders: The secondary mortgage market does not originate loans or appraise properties. Instead, it focuses on purchasing existing mortgages from primary lenders and selling them to investors.

Explain why collecting monthly mortgage payments is not a function of the secondary mortgage market: Loan servicing, including collecting payments, is typically handled by loan servicers or primary lenders, not the secondary market.

Conclude that the correct action completed by the secondary mortgage market is purchasing existing mortgages from primary lenders and selling them to investors, as this facilitates liquidity and stability in the mortgage industry.