In 2017, Tim's Gyms finances the building of a new gym.Tim secures this financing from a bank, and the bank receives ownership if Tim fails to make payments.This source of funds is
A)a bond issued in the bond market.
B)a stock issued in the bond market.
C)a mortgage obtained in the loan market.
D)a mortgage obtained in the stock market.
E)a stock issued in the loan market.

Question

Quizplus · Accepted Answer

The financing that Tim's Gyms has taken from the bank in which the bank holds ownership in case of non-payment is a mortgage obtained in the loan market. A bond is a debt security issued by companies to raise capital by borrowing from the market. Stocks represent ownership in a company, and they are issued in the stock market. However, Tim's Gyms has taken a loan in which the bank holds the ownership of the gym in case of non-payment, which is a mortgage obtained in the loan market. Therefore, option C is the correct answer.

In 2017, Tim's Gyms Finances the Building of a New