Which of the Following Is Correct Concerning Termination Statements

question 5

Multiple Choice

Which of the following is correct concerning termination statements?

• A) A secured party must file a termination statement when consumer goods are involved and the debtor has paid for them.
• B) The termination statement clears the debtor's public record with regard to old, irrelevant financing statements so that the same collateral can be used again to secure a future loan.
• C) The secured party must file a termination statement within 20 days of a consumer debtor's demand, provided the debtor has paid the full debt.
• D) All of the above are correct concerning termination statements.

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Definitions:

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating how much tax will be paid on any additional income earned.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures, usually exempt from federal taxes and, in some cases, state and local taxes.

Corporate Bond

A type of debt security issued by a corporation to raise funds from investors, who are owed repayment of the loan plus interest.

Futures Contract

A Futures Contract is a legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.