Which One of the Following Is False with Regard to Creditors

question 2

Multiple Choice

Which one of the following is false with regard to creditors' remedies?

• A) A person who wins in an action and is awarded damages is called a "judgment creditor."
• B) A garnisheeing order is an order to the sheriff to seize assets of a judgment creditor to satisfy a judgment debt.
• C) A guarantor is a person who agrees to be responsible for a debt if the borrower (the person primarily liable) defaults.
• D) A guarantor may avoid liability if the creditor does some act or enters into an agreement that weakens the guarantor's position.
• E) A debenture can create a "floating charge" that will not attach to anything specifically until the debtor defaults or until the happening of another "crystallizing" event.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including both interest payments and capital gains.

Real Rate Of Return

The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or other external effects.

Inflation Rate

The general rise in prices across goods and services, resulting in a decrease in the ability to purchase.

Semiannual Coupon

A fixed interest payment on a bond that is made twice a year.