Which Type of Inventory Would a Bank Be Most Willing

question 21

Multiple Choice

Which type of inventory would a bank be most willing to accept as security for a loan?

• A) Cabbages growing in a farmer's field
• B) Produce on the shelves of a grocery store
• C) An inventory of t-shirts featuring the winners of last month's Superbowl
• D) Boats owned by a boat dealer

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.

Rutabagas

A root vegetable with a taste that is a mixture of cabbage and turnip, commonly used in cooking.

Broccoli

A green vegetable with a large flowering head, stalk, and small associated leaves, often eaten for its nutritional qualities.

Marginal Utility per Dollar

The additional satisfaction or utility gained from consuming one more unit of a good or service, divided by its cost.