Which of the Following Is Correct with Regard to Collateral

question 53

Multiple Choice

Which of the following is correct with regard to collateral?

• A) It refers to business (but not personal) assets that a borrower uses to secure a loan or other credit.
• B) It consists of tangible assets like buildings as well as intangible assets like goodwill.
• C) Collateral can be seized by the lender if the loan is not repaid according to specified terms.
• D) It refers to personal (but not business) assets that a borrower uses to secure a loan or other credit.
• E) Banks are most impressed with debt investment.

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Definitions:

Inversely

In an opposite or reverse manner, often referring to the relationship where as one variable increases, another decreases.

Fifth Power

A number or variable raised to the exponent of five, indicating it is multiplied by itself four times.

Hooke's Law

A principle stating that the force needed to extend or compress a spring by some distance is proportional to that distance.

Average Speed

The total distance traveled divided by the total time taken, reflecting a constant rate of movement over a specific interval.