Which of the Following Is TRUE? a Bank Will Be

question 58

Multiple Choice

Which of the following is TRUE? A bank will be more likely to lend money to a borrower if the borrower grants the bank a security interest in its assets because

• A)the security interest prevents the borrower from defaulting.
• B)if the borrower defaults, the security interest guarantees that those assets can be seized by the bank, sold, and the proceeds used to pay back the loan.
• C)if the borrower defaults, the security interest means that the bank has a right to seize the assets, sell them, and use the proceeds to pay back the loan.
• D)if the borrower defaults, the bank will be able to get a court order allowing it to seize the assets, sell them, and use the proceeds to pay back the loan.
• E)the bank does not have to worry about whether the loan is paid back because it can keep the debtor's assets.

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Definitions:

Small Samples

Investigations or analyses that involve a relatively small number of observations or data points, which may require special statistical techniques to infer conclusions.

Actual Dimensions

The measured size or extent of an object, as opposed to its designed or expected dimensions.

Process Control

The use of information technology to control a physical process.

Natural Causes

Factors or events occurring in nature that can lead to changes or impacts in the environment or human activities without human intervention.