If Joan is applying for a loan for a shelving system to improve her retail sales where the system will serve as collateral, which of the following types 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 loan where movable personal property, such as equipment or inventory, is put up as collateral. In this case, the shelving system would serve as collateral for the loan, making a chattel mortgage the most appropriate option. A line of credit is typically used for short-term working capital needs, while a real estate mortgage is used for real property. A term loan could be an option, but a chattel mortgage is a more specific type of term loan that is better suited for this scenario.

If Joan Is Applying for a Loan for a Shelving