When You Pay for Your $74 Purchase at the Grocery

question 17

Multiple Choice

When you pay for your $74 purchase at the grocery store with a debit card,you are

• A)transferring $74 of currency from your bank account to the grocery store's bank account.
• B)withdrawing $74 from your bank account with which you pay for your groceries.
• C)transferring your claim on $74 worth of gold to the grocery store.
• D)electronically transferring $74 of deposit money from your bank account to the grocery store's bank account.
• E)essentially promising the grocery store that your bank will pay them $74 at the end of the month when debts are settled.

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Definitions:

Perfecting

In the context of security interests, it refers to the legal process of making a security interest enforceable against third parties by taking the necessary statutory steps.

Security Interest

A legal claim or lien on collateral that gives the creditor the right to take possession of the asset if the debtor defaults on their obligations.

Article 9

A provision of the Uniform Commercial Code (UCC) that governs secured transactions or agreements involving personal property as collateral.

Collateral

Assets pledged by a borrower to secure a loan or guarantee repayment, which can be seized by the lender if the borrower fails to pay.