Which of the Following Characteristics Should Collateral Have

question 44

Multiple Choice

Which of the following characteristics should collateral have?

• A)The value of the collateral should not exceed the value of the loan.
• B)The collateral should be highly liquid.
• C)The lender must be able to perfect a lien on the collateral.
• D)a.and b.only.
• E)b.and c.only.

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Definitions:

Free Ends

The extremities or terminals of a linear structure, such as a piece of DNA or a thread, that are not attached or bonded to anything else.

Hydrophobic

Characteristic of molecules that repel water; substances that are not easily soluble in water.

Hydrophilic

A term describing molecules or substances that have an affinity for water, making them capable of dissolving in or being wetted by water.

Fatty Acid

A lipid that is an organic acid containing a long hydrocarbon chain, with no double bonds (saturated fatty acid), one double bond (monounsaturated fatty acid), or two or more double bonds (polyunsaturated fatty acid); components of triacylglycerols and phospholipids, as well as monoacylglycerols and diacylglycerols.