When a Surety Pays the Creditor Upon the Default of the Debtor

question 9

Multiple Choice

When a surety pays the creditor upon the default of the debtor, the surety has the right of _____ against the debtor.

• A) subrogation
• B) gentrification
• C) reimbursement
• D) exoneration

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Definitions:

Sugar Pill

A placebo, often used in medical trials to test the efficacy of new drugs by comparing their effects to those of an inert pill.

Drowsy

A feeling of being sleepily tired and lethargic, not fully awake, often as a prelude to falling asleep.

Random Assignment

The process of selecting participants for experimental and control groups by using a chance procedure to guarantee that each participant has an equal probability of being assigned to any of the groups; a control for selection bias.

Participant

An individual who takes part in a study or experiment, providing data for researchers to analyze.