Marty obtained a three-year loan at 7.5 percent interest to buy a new BMW and used the car as collateral for the loan. After two years, the Stocker Finance Company repossessed Marty's car because

Question

Quizplus · Accepted Answer

Marty failed to repay the loan according to the loan terms, resulting in the repossession of the car. This is a common consequence of defaulting on a secured loan, where the collateral (in this case, the car) is taken by the lender to recover some or all of the outstanding debt. The other choices are irrelevant or incorrect - A does not explain why the car was repossessed, B is speculative and lacking evidence, D is the opposite of defaulting, and E assumes that Marty did not sign the loan agreement, which is unlikely.

Marty Obtained a Three-Year Loan at 7