Ghislaine has bought a house. She borrowed most of the price of the house from Monster Bank, which holds a fixed charge over the house as its security Which of the following descriptions of the legal relationship between Ghislaine and Monster Bank is accurate? A. Ghislaine is the bank's receivable (debtor) and Monster Bank is Ghislaine's mortgagee B. Ghislaine is the bank's payable (creditor) and Monster Bank is Ghislaine's mortgagor C. Ghislaine is the bank's bailor and Monster Bank is Ghislaine's mortgagee D. Ghislaine is the bank's receivable (debtor) and Monster Bank is Ghislaine's ballee

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ghislaine has bought a house. She borrowed most of the price of the house from Monster Bank, which holds a fixed charge over the house as its security
Which of the following descriptions of the legal relationship between Ghislaine and Monster Bank is accurate?
A. Ghislaine is the bank's receivable (debtor) and Monster Bank is Ghislaine's mortgagee
B. Ghislaine is the bank's payable (creditor) and Monster Bank is Ghislaine's mortgagor
C. Ghislaine is the bank's bailor and Monster Bank is Ghislaine's mortgagee
D. Ghislaine is the bank's receivable (debtor) and Monster Bank is Ghislaine's ballee

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Ans. A

Ghislaine is the bank's receivable (debtor) and Monster bank is Ghisline's mortgagee.

 

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