An Acceleration Clause States That If You Default on a Secured

question 96

True/False

An acceleration clause states that if you default on a secured loan,not only can the lender repossess whatever is secured,but if the sale of the asset does not cover what you owe,you can also be billed for the difference.

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Definitions:

Surplus

The condition that occurs when the quantity of a good or service supplied exceeds the quantity demanded, often leading to lower prices.

Interest Rates

The sum charged by a lender, presented as a percentage of the principal, for a borrower’s access to assets.

Supply Of Money

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid financial assets.

Shortage Or Surplus

Economic conditions where the quantity demanded exceeds supply (shortage) or supply exceeds demand (surplus) at a given price.