A Medical Student Is Likely to Consume More Than a High

question 61

Multiple Choice

A medical student is likely to consume more than a high school student because the

• A) medical student bases consumption on current income while the high school student does not.
• B) high school student bases consumption on permanent income while the medical student does not.
• C) medical student's permanent income is likely higher than the high school student's permanent income.
• D) medical student and the high school student both base consumption on current income.

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Definitions:

Financing Statement

A document prepared by a secured creditor and filed with the appropriate government official to give notice to the public that the creditor claims an interest in collateral belonging to the debtor named in the statement. The financing statement must contain the names and addresses of both the debtor and the creditor, and describe the collateral by type or item.

Trade Name

The name under which a business operates and is known to the public, distinct from the legal name of the business entity.

Perfection

The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by the filing of a financing statement with the appropriate government official.

Binding Agreement

A legally enforceable contract between parties that requires the fulfillment of certain obligations.