12-15.The Following Statement(s)is True

Multiple Choice

12-15.The following statement(s) is true:

A) the ability-to-pay theory of default states that a borrower may default when he or she is financially unable to meet the monthly payment
B) the equity theory of default states that borrowers default when there is no positive equity in the property
C) the ability-to-pay theory of default and the equity theory of default are in conflict with each other.
D) a and b