Where Security Devices Are Agreed to in Advance as Terms

question 47

Multiple Choice

Where security devices are agreed to in advance as terms in the contract, they are often called

• A) collateral security.
• B) the creditor back- up system.
• C) the pledge of assets.
• D) consensual security interests.
• E) non- consensual security interests.

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Definitions:

Queuing

The process of forming or waiting in a line, often applied to the theory studying the behavior of lines to improve service efficiency.

Rationing Mechanism

A system or method used to distribute scarce goods or services among competing users.

Price Floor

A government- or authority-imposed minimum price that can be charged for goods and services, typically above the equilibrium price, to prevent prices from falling too low.

Surplus

A situation where the quantity supplied of a product exceeds the quantity demanded at a specific price.