Which of the following is FALSE regarding the release price?
A)It is usually calculated to pay off the loan when the last lot is sold
B)It is usually calculated to pay off the loan before the last lot is sold
C)Increasing the release price usually lowers the lender's risk
D)Increasing the release price is likely to lower the investor's initial cash flow

Question

Quizplus · Accepted Answer

The release price is typically calculated to ensure the loan is paid off before the last lot is sold, not when the last lot is sold. This strategy helps in managing risk and ensuring the loan is repaid in a timely manner.

Which of the Following Is FALSE Regarding the Release Price