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Which of the Following Statements Is False

question 328

Multiple Choice

Which of the following statements is false?


Definitions:

Variable Interest

An interest rate on a loan or security that can change over time based on the underlying benchmark interest rates.

Security Interest

A creditor’s right to use collateral to recover a debt.

Security Agreement

A written agreement that creates a security interest.

Purchase Money Security Interest (PMSI)

A special type of security interest that allows creditors to obtain priority in a debtor's collateral, provided the credit was used to purchase the collateral.

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