In a Suretyship

question 309

Multiple Choice

In a suretyship:

• A) a bank immediately accepts the credit of its debtor
• B) the credit of a third party secures a debt
• C) the credit of the debtor is sufficient to secure a debt
• D) a bank takes a property interest in the debtor's real estate
• E) none of these

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Definitions:

Earning Power

The ability of a company to generate profit from its operations over time.

Stock Portfolio

A collection of stocks held by an individual or institution, designed to achieve specified financial goals.

Bond Portfolio

A collection of bonds held by an individual or institution as an investment strategy to diversify risk and generate income.

Maturity

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.