Asked by Dhabole Sharavanin on Jul 08, 2024
Verified
Which of the following methods CANNOT be employed by lenders to control inventory that has been used as security for a loan?
A) blanket liens
B) trust receipts
C) warehousing
D) compensating balance
Security for a Loan
Collateral or assets pledged by a borrower to secure a loan, providing a lender assurance of repayment.
Blanket Liens
A security interest covering nearly all types of collateral owned by the debtor.
Compensating Balance
A minimum balance that must be maintained in a bank account, often required by banks in return for loans or as a condition for obtaining certain services.
- Understand the distinctions and application of short-term financial instruments.
Verified Answer
Learning Objectives
- Understand the distinctions and application of short-term financial instruments.
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