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.

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Definitions:

Transactions Demand

Transactions demand refers to the amount of money or liquidity that is needed by an economy to facilitate day-to-day transactions.

State Charters

State charters refer to authorization or licenses granted by state governments allowing entities, such as corporations or banks, to operate within a specific state.

Money Supply

The aggregate sum of funds available or in circulation within a nation.

M1

A category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, traveler's checks, and other checkable deposits.