Asked by Kanisha Branner on Jul 14, 2024
Verified
Trust receipts identify the specific units of inventory pledged as collateral for a loan.
Trust Receipts
Trust receipts are documents issued by banks to borrowers indicating that the bank holds the title to imported goods until the loan is repaid.
Collateral
An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.
- Gain an understanding of the various options for short-term finance and their unique characteristics.
Verified Answer
LA
Lindsey AlfredJul 16, 2024
Final Answer :
True
Explanation :
Trust receipts are a type of financial document used in inventory financing, wherein a borrower pledges specific units of inventory as collateral for a loan. Therefore, trust receipts do identify the specific units of inventory pledged as collateral.
Learning Objectives
- Gain an understanding of the various options for short-term finance and their unique characteristics.
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