Which of the Following Factors Will Generally Result in a Higher

question 6

Multiple Choice

Which of the following factors will generally result in a higher rate of interest on an investment?

• A) longer term
• B) shorter term
• C) lower risk
• D) greater liquidity

---

Definitions:

Perfected Secured Interest

A legal condition in which a creditor has established a priority claim on a debtor's collateral, making their claim stronger against third parties.

Unperfected Secured Interest

A security interest in collateral that has not been publicly filed or recorded, potentially making it subordinate to other claims.

Artisan's Lien

A legal right granted to artisans or mechanics over the property they have improved or repaired, securing payment for their work.

Secured Creditor

A secured creditor is an entity that lends money to another party with the agreement that it will be repaid with assets if cash repayment is not possible.