Assume You Are the Creditor in Each of the Following

question 72

Essay

Assume you are the creditor in each of the following situations.Identify the kind of security agreement that is involved in each transaction and explain how you would perfect that agreement.
a.You are the creditor (Everby Bank), and you lend Brisco Gaines $5,000 for a sound system.
b.First Bank loans Doris $10,000 to purchase inventory for her store.
c.First Bank loans Brad $5,000 to purchase a computer for use in his store office.
d.Kevin needs cash for gambling debts.He brings in his CD player to secure a $500 loan.

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Definitions:

Marginal Utility

The further benefit or pleasure derived by consuming an extra unit of a good or service.

Utils

A theoretical unit of measurement used in economics to quantify the level of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Rational

Describes a decision maker who chooses the available option that leads to the outcome he or she most prefers.

Diminishing Marginal Utility

The principle stating that as a person consumes more units of a good, the satisfaction (utility) gained from consuming each additional unit decreases.