When a Debtor Makes a Payment to a Creditor Specifying

question 6

Multiple Choice

When a debtor makes a payment to a creditor specifying how it should be applied, the creditor must apply the payment:

• A) as directed by the debtor.
• B) to the oldest outstanding debt.
• C) to the most recent outstanding debt.
• D) to the largest outstanding debt.

---

Definitions:

Overregularization

A language development error where children apply regular grammatical rules too widely, leading to incorrect verbal forms or constructions.

Evolutionary Adaptation

Changes in biological traits of organisms over generations, enhancing their survival and reproduction in specific environments.

Heuristic Fallacies

Erroneous conclusions or judgments formed based on simplified cognitive strategies rather than careful analysis.

Bilingualism

The ability to understand and use two languages proficiently, often involving complex cognitive processing.