Banks May Not Be Willing to Accept as Collateral for a Loan

question 24

Multiple Choice

Banks may not be willing to accept as collateral for a loan:

• A)accounts receivable in countries that do not support the rights of creditors.
• B)inventory that a firm usually sells very quickly.
• C)accounts receivable that are less than 30 days old.
• D)inventory that is specifically branded with the borrower's name.

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Definitions:

Interference Theory

A theory in psychology that explains how new information can sometimes cause forgetting of old information.

Decay

The gradual reduction in the strength, quality, or quantity of something over time.

Peg Method

A mnemonic technique that involves associating items to be remembered with a list of peg words you have memorized in advance.

Method of Loci

A mnemonic strategy that involves visualizing items to be remembered in specific physical locations.