select the correct answer. which of these statements describes a lien? a. the right of a lender to sell…

select the correct answer. which of these statements describes a lien? a. the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan b. the right of a lender to refuse a loan if the borrower hasnt repaid previous loans on time c. the right of a lender to increase interest rates depending on economic factors

select the correct answer. which of these statements describes a lien? a. the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan b. the right of a lender to refuse a loan if the borrower hasnt repaid previous loans on time c. the right of a lender to increase interest rates depending on economic factors

Answer

Brief Explanations:

A lien is a legal right that allows a lender to take and sell collateral to recoup the principal when a borrower defaults on a loan. Options B and C do not define a lien.

Answer:

A. the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan