The Property Given to a Creditor as Security for a Debt

question 25

Multiple Choice

The property given to a creditor as security for a debt is known as:

• A) a mortgage.
• B) collateral.
• C) a pledge.
• D) a lien.
• E) ademption.

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Definitions:

Taxation

The practice of a government collecting revenues from individuals and businesses to fund public services and infrastructure.

Loanable Funds

A marketplace where individuals who save provide capital for those in need of loans.

Potential Investments

Opportunities for allocating resources with the expectation of generating a future financial return or benefit.

Loanable Funds

Represents the money available for borrowing in the financial markets, determined by savings and the supply of credit.