Which Statement Is Correct Regarding Priority in Rights to the Computer

question 37

Multiple Choice

Which statement is correct regarding priority in rights to the computer?

• A)XYZ Electronics had priority only if XYZ Electronics perfected its security interest within 10 days of the purchase.
• B)XYZ Electronics had priority only if XYZ Electronics perfected its security interest within 20 days of the purchase.
• C)The bank had a security interest in the computer because it perfected its security interest before XYZ Electronics did so.
• D)The bank had priority because the computer was considered after-acquired property properly covered by the initial security interest.
• E)XYZ Electronics had priority because XYZ Electronics had a purchase-money security interest in the computer.

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Definitions:

Demand Deposits

Demand Deposits are bank account funds that can be withdrawn at any time without any advance notice to the institution, such as checking accounts.

Forex

The market in which currencies are traded. It is the largest and most liquid financial market in the world.

Ordering and Carrying Inventory

Refers to the costs associated with ordering and holding inventory, including storage, management, and insurance.

Safety Stock

Additional quantity of an item held in inventory to reduce the risk of stockouts, often due to variability in supply or demand.