Which of the Following Entitles a Creditor to Perfection of a Security

question 49

Multiple Choice

Which of the following entitles a creditor to perfection of a security interest under the Personal Property Security Act?

• A)the point in time when the creation of a security interest by entering into a security agreement with the debtor
• B)the point in time when value is given under the contract to the debtor
• C)the point in time when the creditor obtains a claim against the assets
• D)the point in time when the creditor takes physical possession of the property used as security such as share certificates or bonds
• E)The point in time when the creditor searches the title of the asset through the PPSA registration system

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Definitions:

Securities

Financial instruments that hold some type of monetary value, such as stocks, bonds, or options.

Factor Portfolios

Investment portfolios constructed to capture risk factors or sources of returns that are believed to explain the performance of securities.

Expected Return

The weighted average of all possible returns for a given investment, with weights being the probabilities of each outcome.

Risk-Free Rate

The hypothetical return rate on an investment that carries no risk of losing money, commonly illustrated by the interest rate on government securities.