Which of the Following Is TRUE? a Bank Will Be

question 68

Multiple Choice

Which of the following is TRUE? A bank will be more likely to lend money to a borrower if the borrower grants the bank a security interest in its assets because

• A) if the borrower defaults, the security interest means that the bank has a right to seize the assets, sell them and use the proceeds to pay back the loan.
• B) if the borrower defaults, the bank will be able to get a court order allowing it to seize the assets, sell them and use the proceeds to pay back the loan.
• C) the bank does not have to worry about whether the loan is paid back because it can keep the debtor's assets.
• D) the security interest prevents the borrower from defaulting.
• E) if the borrower defaults, the security interest guarantees that those assets can be seized by the bank, sold and the proceeds used to pay back the loan.

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Definitions:

Organic solidarity

A concept in sociology that describes the social cohesion based on the interdependence of individuals in advanced, industrial societies, as opposed to the similarities in a more traditional society.

Door to door sales

The direct selling of products or services to consumers at their residences without prior invitation or appointment.

Secondary labour market

Refers to low-paying, insecure jobs with poor working conditions and limited opportunities for promotion, often contrasted with primary labour market positions that offer higher wages and job security.

Professions

Prestigious occupations that require specialized knowledge and are regulated by a governing body.