What Are Restrictions That Impose Limits on the Actions of a Borrower

question 57

Multiple Choice

What are restrictions that impose limits on the actions of a borrower called?

• A)Conditions
• B)Collateral
• C)Covenants
• D)Chattels

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Interest Revenue

Income received from investments, savings, or as a payment for lending money.

Promisor

A person or entity who makes a promise or commits to performing a specified action in a contract.

Face Amount

The nominal or dollar value stated on a financial instrument or security, such as a bond.