Guarantee payment in the event borrower defaults

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1. Property pledged to a lender to guarantee payment in the event the borrower defaults is called _____.

lost property

liquid assets

insolvency

collateral

2. The theory of Bureaucratic Behavior suggests that the objective of a government bureaucracy is to ____.

maximize its own welfare

maximize the public's welfare

act in the public's best interest

minimize its own welfare

3. The value of any asset is the ___ of its ___.

future value; future cash flows

future value of past cash flows

present value; future cash flows

present value; past cash flows

Reference no: EM132061765

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