Collateral

question 67

Multiple Choice

Collateral

• A)gives the lender additional recourse if the payments are not made.
• B)is used on unsecured loans.
• C)increases the interest rate on loans.
• D)is required on all loans but not on revolving credit.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Stock

Equity units in a corporation, signifying a stake in the firm's profits and assets.

Articles of Dissolution

Documents filed with a governmental body to formally conclude the legal existence of a corporation or partnership.

Secretary of State

A senior official in the government responsible for managing and overseeing governmental departments or representing the country in foreign affairs.