A closed-end mutual fund that invests in loans to help finance the development of properties is called a(n)
A)equity REIT.
B)real estate REIT
C)mortgage REIT.
D)option REIT

Question

Quizplus · Accepted Answer

A closed-end mutual fund that invests in loans to help finance the development of properties is called a mortgage REIT. Mortgage REITs use the money they raise from investors to lend to property developers and charge interest on those loans. This is different from equity REITs, which invest in properties themselves, or real estate REITs, which invest in a mix of both properties and mortgages. Option REITs are not a commonly recognized type of REIT.

A Closed-End Mutual Fund That Invests in Loans to Help