Which of the Following Are Assets That a Borrower Uses

question 217

Multiple Choice

Which of the following are assets that a borrower uses to secure a loan or other credit and that are subject to seizure by the lender if the loan isn't repaid according to the specified repayment terms?

• A)Down payment
• B)Security
• C)Collateral
• D)Repossessions
• E)Fixtures

Utilize the Capital Asset Pricing Model (CAPM) to determine the required rate of return.

Ascertain how changes in risk (beta) influence stock valuation and required returns.

Evaluate the impact of different growth phases on a company's valuation using the Multistage DDM.

Recognize the relationship between a firm's financial ratios (such as ROE and ROA) and its growth, risk, and valuation.

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Definitions:

Exporting Industries

Industries that produce goods and services that are sold abroad.

Import-Competing Industries

Industries that produce goods and services that are also imported.

Deadweight Loss

The loss in total surplus that occurs whenever an action or a policy reduces the quantity transacted below the efficient market equilibrium quantity.

Tariff

A tax imposed by a government on goods and services imported from other countries, affecting trade.