What Must Be Done When a Debtor Pays Off the Debt

question 8

Multiple Choice

What must be done when a debtor pays off the debt secured by a security interest in goods?

• A) nothing must be done.
• B) the collateral must be sold
• C) a termination statement must be filed by the creditor.
• D) the original note must be returned to the debtor.

---

Definitions:

T-statistic

A type of statistic used in hypothesis testing, calculated by standardizing a sample mean difference given its sample standard deviation.

Standard Error

A statistical measure that quantifies the variability or dispersion of a sample statistic from the population parameter it estimates.

Adjusted R Square

A statistical measure that indicates the proportion of variance in the dependent variable that is predictable from the independent variables, adjusted for the number of predictors in the model.

Parsimony Principle

The Parsimony Principle, often used in scientific research, is the idea that the simplest explanation is usually correct, encouraging minimal assumptions.