Which of the Following Is NOT True of Restrictive Covenants

question 14

Multiple Choice

Which of the following is NOT true of restrictive covenants?

• A)They sometimes require borrowers to maintain the value of collateral offered to the lender.
• B)They increase the marketability and liquidity of loans.
• C)They sometimes require a borrower to maintain a certain minimum level of net worth.
• D)They sometimes limit a borrower's risk taking.

---

Definitions:

Casual Crowd

A gathering of individuals who come together without a specific purpose or for a short-lived event, often spontaneously.

G-8 Summit

An annual forum for the leaders of eight of the world's major economies to discuss and coordinate economic policy and global issues.

House of Commons

The lower chamber of the parliament in the UK and other parliamentary systems, consisting of members elected to represent constituencies.

Rock Concert

A live performance by a rock band or artist in front of an audience, featuring electric instruments and a strong rhythm section.