Which of the Following Types of Inventory Financing Is Generally

question 21

Multiple Choice

Which of the following types of inventory financing is generally used when the inventory put up as collateral is relatively low priced, fast moving, and difficult to identify individually?

• A) Recourse
• B) Factoring
• C) Trust receipts
• D) Warehouse receipt
• E) Blanket liens

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Definitions:

Obligation

A legal or financial duty to make a payment or fulfill a contract.

Futures Contracts

Financial contracts obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Bushels Of Wheat

A measure of volume used primarily in agriculture, equivalent to approximately 35.24 liters, often used to quantify wheat production or trade.