Public warehouses will hold issue receipts for goods used as collateral for borrowed funds.

Question

Quizplus · Accepted Answer

This statement is true. Public warehouses can issue receipts for goods stored in their facilities, and these receipts can be used as collateral for loans. This is known as a warehouse receipt, and it represents a claim on the underlying goods held in storage. Lenders may accept warehouse receipts as collateral because they can take possession of the underlying goods if the borrower defaults on the loan.

Public Warehouses Will Hold Issue Receipts for Goods Used as Collateral