Detailed Answer
(d) The requirement is to identify the term used to describe
asset-backed public offerings. Answer (d) is correct because
securitization of assets is the offering of debt collateralized
by a firm’s accounts receivable. Answer (a) is incorrect because a
trust receipt is an instrument that acknowledges that the borrower
holds a collateralized inventory and that proceeds from the
sale will be put in trust for the lender. Answer (b) is incorrect
because warehousing is the storage of inventory in a public warehouse
that can only be removed with the lender’s permission.
Answer (c) is incorrect because a blanket inventory lien is a document
that establishes the inventory as collateral for the loan.
