Which of the Following Is True of Perfection by Possession

question 1

Multiple Choice

Which of the following is true of perfection by possession of collateral?

• A) A creditor cannot take possession of the collateral until a financing statement is filed.
• B) No financing statement has to be filed if the creditor has physical possession of the collateral.
• C) A debtor cannot acquire security against the collateral without filing a financing statement.
• D) A financing statement can be filed only against intangible personal property placed as collateral.

---

Definitions:

Excess Supply

A situation where the quantity of a product offered for sale exceeds the quantity demanded at the current price, often leading to a decrease in price.

Market Equilibrium

Market Equilibrium is the point where the quantity of a good or service supplied equals the quantity demanded, leading to a stable market price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Wage Rate

The amount of money paid to an employee by an employer for a unit of time worked, often expressed per hour or per year.