Collateral

question 14

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 except revolving credit.

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Definitions:

Larger Profits

An increase in the surplus remaining after total costs are deducted from total revenue, indicating greater financial success for a business.

Variable Costs

Costs that vary with the quantity of output produced.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit production cost.

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.