Which of the Following Secures a Bank's Interest in a Time-Sales

question 42

Multiple Choice

Which of the following secures a bank's interest in a time-sales finance contract?

• A) The payment obligation of the equipment purchaser
• B) The dealer's security interest in the equipment purchased
• C) Recourse to the manufacturer in the event of default
• D) All of the answers are correct
• E) The payment obligation of the equipment purchaser and recourse to the manufacturer in the event of default

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price.

Inelastic Supply

Describes a situation where the quantity supplied of a good changes by a smaller percentage than the percentage change in its price.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for public purposes.

Cigarette Manufacturers

Companies engaged in the production and sale of cigarettes.