23. True or False. John borrows $1,000 from his friend

Maria, and gives her a signed paper that says: "I owe

Maria $1,000." This document could be used in court as

evidence that Maria owes a debt to John.

24. True or False. The document described in Question

#23 is a good example of a "Promissory Note."

25. True or False. Most credit-card debts are

"unsecured," meaning there is no collateral that can be

claimed by the credit-card issuer if the debtor cannot

pay the credit-card debt.

26. True or False. A lender who wants to be extra safe

could require a borrower to sign a Promissory Note, AND

to pledge collateral like a car or other item of personal

property, in case the borrower cannot, or will not, repay

the loan.

27. True or False. In the case of a Chapter 7

Bankruptcy, a creditor who has a security interest in the

debtor's car will usually have a better chance of being

paid that a creditor who is unsecured.