Why Is the Unencumbered Status of Assets Considered to Be

question 67

Multiple Choice

Why is the unencumbered status of assets considered to be a distinguishing characteristic?

• A) They are typically worth more than the existing debt.
• B) They are typically acquired after giving a security interest.
• C) Lenders typically find them most attractive as security.
• D) Lenders typically find their portability to be a risk.

---

Definitions:

Left Prefrontal Cortex

The region of the brain associated with approaches to processing emotions, making decisions, and regulating social behavior.

Endorphins

Natural pain-relieving peptides produced by the body that also promote feelings of pleasure and well-being.

Cortisol

A steroid hormone released by the adrenal glands in response to stress; plays roles in glucose metabolism, blood pressure regulation, and the immune response.

Serotonin

A neurotransmitter in the brain that regulates mood, appetite, and sleep, among other functions, often associated with feelings of well-being.