A Clause in a Debt Contract Requiring That the Borrower

question 60

Multiple Choice

A clause in a debt contract requiring that the borrower purchase insurance against loss of the asset financed with the loan is called a

• A)collateral-insurance clause.
• B)prescription covenant.
• C)restrictive covenant.
• D)proscription covenant.

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Definitions:

Testing

The process of evaluating a product, service, or system to ensure it meets specified requirements, functions correctly, or identifies any defects.

Intermediaries Shipping

Third-party entities in the supply chain that specialize in the logistics and transportation of goods from manufacturers to consumers or retailers.

Time Utility

The increase in a product's value resulting from its availability at the most appropriate or desired time.

Place Utility

The value added to products by making them available at a location convenient to consumers.