debarya Wrote:went for option C, where they and their both refer to property values.
no. in that answer choice, "their" refers to homeowners, not property values.
to make this extra clear:
you see: their equity
ask yourself: whose equity?
the answer is "homeowners' equity", not "property values' equity" (in fact, the latter of these wouldn't make sense in any context).
2) Also, is it that usage of pronoun does not necessarily refer back to immediate noun (like the case of which, who)...
i'm sorry, but i don't understand what you're asking here.