The Sum of Seasonal Credit Discount Loans, Secondary Credit Discount

question 6

Multiple Choice

The sum of seasonal credit discount loans, secondary credit discount loans, and primary credit discount loans that banks take out because of temporary problems are known as

• A)unsubstantiated discount loans.
• B)discount loans for profit.
• C)discount loans that arise for business needs.
• D)inelastic discount loans.

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Definitions:

Perfected

In law, refers to a state where a security interest or lien secures payment or performance of an obligation to its fullest legal extent.

Security Interest

A legal claim or lien on collateral that secures the performance of an obligation, usually repayment of a debt.

Collateral

An asset offered to secure a loan or other credit and subject to seizure upon default.

Security Interests

A lawful demand or security interest on assets that have been offered as a guarantee, typically to ensure the repayment of a borrowed sum.