A Short-Term Loan Which Is Secured by Inventory That Is

question 4

Multiple Choice

A short-term loan which is secured by inventory that is held in trust is referred to as:

• A)a blanket inventory lien.
• B)a secured line of credit.
• C)a banker's acceptance.
• D)a trust receipt financing arrangement.
• E)field warehousing financing.

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Definitions:

Determinant of Supply

Factors that influence the quantity of a good or service that producers are willing and able to sell at a given price, such as production technology, input prices, and expectations of future prices.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Excise Tax

A tax levied on specific goods, services, or transactions, often specific types of products such as gasoline, cigarettes, or alcohol.

Equilibrium Price

The cost at which the amount of a good consumers want to buy matches the amount producers are willing to sell, achieving a state of equilibrium in the market.