Question

An amount of money equal to the support price times the quantity offered as collateral lent by the Commodity Credit Corporation (CCC). The loan is considered paid in full when turned over to the CCC, when the market price falls below the support price.

a. Asset Fixity
b. Nonrecourse loan
c. Commodity loan rate
d. Payment Rate

Answer 1

The correct answer is b. Nonrecourse loan.

Step-by-step explanation:

The correct answer is b. Nonrecourse loan. In this context, a nonrecourse loan refers to a loan where the borrower is not personally responsible for repaying the loan if the market price falls below the support price. The loan is considered paid in full when the collateral is turned over to the Commodity Credit Corporation (CCC).