What Is the Unique Feature of a Purchase-Money Security Interest

question 35

Multiple Choice

What is the unique feature of a purchase-money security interest (PMSI) ?

• A) It is used to grant security in real property.
• B) It gives the secured party priority over existing perfected security interests.
• C) It survives bankruptcy.
• D) It provides a guarantee of payment.

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Definitions:

Present Value

The present value of a future amount of money or series of cash payments, calculated using a particular return rate.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities at any given time.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specific period.

World's Population

The total number of people living on Earth at any given time, an ever-changing figure due to births, deaths, and migration.