In a Secured Transaction, the Creditor's Right to Payment of a Debt

question 42

Multiple Choice

In a secured transaction, the creditor's right to payment of a debt may be secured by his taking title to certain assets. In which one of the following types of transactions do those assets consist entirely of intangible property?

• A) Chattel mortgage.
• B) A debenture issued by a manufacturing firm with a floating charge over its inventory of products.
• C) A sale of goods in which the buyer will obtain title when he finishes paying the price in installments.
• D) Assignment of book accounts.
• E) A transaction under section 427 of the Bank Act, whereby a bank takes security over a farmer's growing crops with respect to a loan to purchase the seed and fertilizer necessary to grow those crops.

Distinguish between nondiscretionary and discretionary fiscal policy and their respective roles in economic management.

Comprehend the significance of correctly balancing the federal budget and its implications for the national debt.

Understand the relationship between fiscal policy decisions (expenditures and tax policies) and their impacts on recessionary or inflationary gaps.

Understand the difference between programmed and nonprogrammed decisions.

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Definitions:

Outstanding Shares

The total number of shares of a company's stock currently held by all its shareholders, including share blocks and restricted shares.

Issued Shares

The total number of shares that have been sold to and are held by shareholders.

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares plus any amount paid in excess.

Par Value

A nominal value assigned to a share of stock in the corporation's charter, serving as the minimum price at which shares can be issued.