Pete Borrows $5,000 from Willy in a Secured Transaction Using

question 70

Multiple Choice

Pete borrows $5,000 from Willy in a secured transaction using Pete's BMW as collateral.Pete then borrows $7,000 from Janet using the same car as collateral.Neither Willy nor Janet perfects their security interests.Pete defaults on the loans.The party with priority is

• A)Willy,because his interest was the first to attach.
• B)Janet,because Pete owes her more money.
• C)Janet,because her interest was the second to attach.
• D)Willy,because Pete owes him less money.

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Definitions:

Velocity of Circulation

The rate at which money is exchanged in an economy, representing the number of times a unit of currency is used to purchase goods and services within a given time period.

Classical Economist

An economist who believes in economic theories that emphasize free markets, minimal government intervention, and the importance of self-regulating business cycles.

Inadequate Aggregate Demand

A situation where the total demand for goods and services in an economy is not sufficient to produce full employment.

Recession

A decline in real GDP for two consecutive quarters.