Franklin Is Planning for a Purchase of a Vehicle in Two

question 39

Multiple Choice

Franklin is planning for a purchase of a vehicle in two years. Since he wants to be certain that his funds are safe (insured) , which of the following should he use?

• A) A credit card.
• B) A trust.
• C) A loan.
• D) A savings account.
• E) A home mortgage.

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Definitions:

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party.

Guarantor

An individual or entity that promises to pay a borrower's debt if the borrower fails to fulfill their financial obligations.

Debtor

An individual or entity that owes a debt to another.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone; a moral obligation to behave correctly towards or in respect of.