If Joan is applying for a loan for a shelving system to improve her retail sales where the system will serve as collateral,what type of loan would be the most appropriate?
A)chattel mortgage
B)line of credit
C)real estate mortgage
D)term loan

Question

Quizplus · Accepted Answer

A chattel mortgage is a type of secured loan where movable personal property, such as equipment, is used as collateral. In this case, Joan's shelving system would qualify as movable personal property and could be used as collateral for the loan. A line of credit does not require collateral and is typically used for short-term financing. A real estate mortgage is used to finance real property, such as land or a building. A term loan is a lump sum of money that is repaid over a set period of time and may or may not require collateral. A chattel mortgage is the most appropriate choice for Joan's situation.

If Joan Is Applying for a Loan for a Shelving