A ________ is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.
A) purchase money security interest
B) cumulative security interest
C) future advance monetary interest
D) default interest

Question

Quizplus · Accepted Answer

A purchase money security interest automatically arises when a creditor extends credit to a consumer for the purpose of purchasing consumer goods. This interest gives the creditor the right to repossess the goods if the consumer defaults on the loan.

A ________ Is an Interest a Creditor Automatically Obtains When