Ron Does Not Make a Payment on His Car Loan

question 5

Multiple Choice

Ron does not make a payment on his car loan for several months.The dealer,Star Auto,repossesses the car by towing it from a public parking lot.Ron sues Star for breach of the peace.Ron will probably

• A)prevail,because Ron has not formally defaulted on the car loan.
• B)prevail,because the car was in a public lot when it was towed.
• C)not prevail,because the repossession was not a breach of the peace.
• D)not prevail,because a creditor can repossess property in which it holds an interest if no threats or force are used against a debtor.

---

Definitions:

Capital Budgeting

The process used by organizations to evaluate and select long-term investments that are in line with the firm's goal of wealth maximization.

Uncovered Interest Parity

A theory suggesting that the difference in interest rates between two countries is equal to the expected change in their exchange rates.

Foreign Currency Approach

A method of assessing and managing the risks associated with changes in foreign exchange rates.

Capital Budgeting

The process used by organizations to evaluate and select major investment projects based on their potential to generate additional profits.