Which of the Following Is True of a Collateral Note

question 13

Multiple Choice

Which of the following is true of a collateral note?

• A)The collateral cannot consist of stocks or bonds.
• B)It is a note secured by a third person's guarantee.
• C)It is a note secured by personal property.
• D)The collateral cannot consist of some tangible personal property.

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Definitions:

Perfect Substitutes

Goods that can be completely replaced by another with no loss of utility to the consumer.

Inputs

The resources such as labor, materials, and capital, that are used in the production process to produce goods and services.

Output

The total amount of goods or services produced by an individual, firm, industry, or economy in a given period.

Production Function

A formula detailing how input factors like raw materials and labor are turned into output or goods.