Which method of controlling pledged inventory provides the greatest degree of security to the lender?
A) Overall inventory liens
B) Warehousing
C) Trust receipts
D) Blanket inventory liens

Question

Quizplus · Accepted Answer

Warehousing provides the greatest degree of security to the lender because the inventory is stored in a warehouse under the control of the lender or a third party, ensuring that the lender has direct access to the collateral if the borrower defaults.

Which Method of Controlling Pledged Inventory Provides the Greatest Degree