A(n)________ Provision in the Security Agreement Allows the Security Interest

question 13

Multiple Choice

A(n) ________ provision in the security agreement allows the security interest of the creditor to also apply to goods the debtor acquires at a later time.

• A)forbearance
• B)attachment
• C)floating lien
• D)acceleration

---

Definitions:

MB = MC Decision Framework

A decision-making process where an action is taken if the marginal benefit (MB) is equal to or greater than the marginal cost (MC).

Interest-Rate Cost-of-Funds Curve

A graphical representation displaying the relationship between interest rates and the total cost of funds to a lending institution.

Marginal Cost Element

The increase in total cost that arises from producing one additional unit of a good or service.

MB = MC Decision Framework

A principle in economics where optimal decision-making is achieved when the marginal benefit (MB) of an action equals its marginal cost (MC).