Regardless of whether the buyer is aware of the security interest, so long as the buyer purchases the good for his or her personal use, the secuterminates if the sale to the new buyer is made before the original secured party files a financial statement.O As long as the buyer is not aware of the security, interest, purchases the good for personal use or resale, and purchases good before the securefinancial statement, the buyer obtains the good free of the security interest.O The security interest immediately terminates.O The security interest passes to the new buyer.QUESTION 20Which of the following methods of perfection should a bank use if it wishes to ensure it will not have to expend efforts in repossession?O A bank cannot ensure it will not have to repossess the collateral.O Perfection by filing.O Perfection by collateral in interest.O Perfection by possession..O Perfection by implication.QUESTION 21By which of the following is a mechanic's lien created?O ConsentO ForeclosureO StatuteO MortgageO AcknowledgementQUESTION 22Click Save and Submit to save and submit. Click Save All Answers to save all answers.

The answers to the question of the mcqs are given below

Answered: QUESTION 20 Which of the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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24
Answer question 70
QUESTION 8 The appropriate collateral for a secured short-term loan is ... fixed assets. work-in-progress inventory. raw materials, inventory and receivables. ordinary stock in privately held corporations.
The agency problem in the mortgagė markets was due to the business model. O 1) "pass-through" O 2) business-as-usual 3) securitization O 4) originate-to-own O5) None of the answers are correct
Which of the following statements is correct? O There is no interest included in a zero-interest-bearing note. O A long-term note's fair value and present value are always the same. O A note is signed by the payee in favour of the maker. O All notes contain an interest element because of the time value of money.
Question 18 of 30 Substitute of term loan facility is O Financial guarantee Performance guarantee O Personal guarantee Deferred payment guarantee
When loans are obtained from the bank or lending institutions, the accounts receivable may be pledged as collateral security for the payment of the loans requiring no entry nor disclosure with respect to pledged accounts in the books of the borrower TRUE OR FALSE
11. Which is an incorrect scenario on covenants?a. The issuing firms pursued revenue generating projects to ensure payment of the interest and theprincipal on a timely basis.b. The issuing firm disposes a mortgage on a bond to settle other creditors’ claims to preventinsolvency.c. The issuing firm submitted periodic reports to the trustee bank to fulfill the loan agreement.d. The issuing firm disposed the collateral to settle the agreement with the bondholders.e. B & Df. All of the aboveg. None of the above 12. Statement 1: Bond issuers can take additional loans against the properties that were considered ascollaterals for the bonds.Statement 2: Bond issuers can impose the taxes paid for registering the bonds against on the interestand principal claims of the bondholders.Statement 3: Bond issuers can prioritize other claims of other creditors over the bondholders in casesof bankruptcy. Statement 4: Bond issuers can pay dividends of shareholders even though the bondholders were…
14 Risk related to counterparty failure to meet their obligation based on the initially agreed terms is referred to as:* A. Operational risk B. Funding risk C. Credit risk D. Fiduciary risk
The relationship between a banker and its customers are not only fiduciary in nature but contractual as well. Therefore under any contractual terms, there exist terms and conditions, also known as an exclusion clause to protect the maker of the statement. With regards to case law, explain the rules of “incorporating” an exclusion clause in order for it to work.
Item 18 The prime lending rate of commercial banks is an announced rate and is often understated from the viewpoint of even the most credit-worthy firms. Which one of the following requirements always results in a higher effective interest rate? Select the correct response: O A covenant that restricts the issuance of any new unsecured bonds during the existence of the loan. O A floating rate for the loan period. The imposition of a compensating balance with an absolute minimum that cannot be met by current transaction balances. The absence of a charge for any unused portion in the line of credit.
LC6Q 4) The property that is held as security on a mortgage is called Collateral Equity Interest Property

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