Which of the Following Is Not Guaranteed Under an Implied

question 19

Multiple Choice

Which of the following is not guaranteed under an implied warranty?

• A) The goods are free of hidden security interests or liens.
• B) The goods are not subject to a rightful claim by a third party.
• C) The goods are merchantable.
• D) The goods may be returned for a refund or replaced in the event of any defect.

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Definitions:

Accrued Interest

The amount of interest that has accumulated on a bond or loan but has not yet been paid by the borrower.

Inverse Floaters

Bonds that have coupon rates that move inversely to some reference rate, typically a short-term interest rate.

Coupon Rates

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Interest Rates

The charge, as a percentage of the principal sum, levied by a lender on a borrower for asset usage.