Possible Investment Objectives May Include

question 16

Multiple Choice

Possible investment objectives may include
1. capacity to meet financial emergencies
2. preservation of capital
3. desire to finance retirement

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)all of the above

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Definitions:

Surety

Surety is a financial guarantee provided by a third party, promising to pay a debt or perform an obligation if the primary party fails to do so.

Electronic Chattel Paper

A digital form of chattel paper, which includes any record or evidence of an obligation and a security interest in specific goods.

Security Interest

A financial interest in a piece of property, granted to a creditor, ensuring claim to the property should the debtor default on their obligation.

Automatic Perfection

A legal condition in which a security interest in a collateral automatically becomes effective without the need for any further action, under certain conditions, once it attaches.