Question

To obtain information about an auto loan, such as where and when the loan originated and the current address of the debtor, an investigator should search the Uniform Commercial Code documents filed with the Secretary of State.

a. True
b. False

Answer 1

Before granting a loan, banks often require borrowers to provide information about their income sources and undergo a credit check. Other ways to reassure the bank include having a cosigner on the loan and offering collateral.

Step-by-step explanation:

In the financial capital market, before a bank makes a loan, it requires a prospective borrower to fill out forms regarding income sources. Additionally, the bank conducts a credit check on the individual's past borrowing. Other ways to reassure a bank that is faced with imperfect information about whether the borrower will repay the loan include requiring a cosigner on the loan and requiring collateral, such as property or equipment, that the bank can seize and sell if the loan is not repaid.