North American Bat Experts Company (NABE)has just sold a batting machine to a Jamaican cricket team.The team will pay for the machine by borrowing the money from NABE and securing the loan using the machine.This type of debt is called:

Question

Quizplus · Accepted Answer

A purchase-money mortgage is a loan used to purchase an asset, with the asset itself serving as collateral for the loan. In this case, the Jamaican cricket team is borrowing money from NABE to buy the batting machine and securing the loan using the machine. Therefore, C is the most appropriate choice. A debenture is a type of bond that is not backed by collateral, an acceptance is a financial instrument used in international trade transactions, and a line of credit is a flexible loan that can be used for a variety of purposes. None of these options accurately describe the debt arrangement between NABE and the Jamaican cricket team.

North American Bat Experts Company (NABE)has Just Sold a Batting