Question

A creditor who extends credit to a consumer to purchase a consumer good under a written security agreement obtains​ a(n) _____ security interest in the consumer good.

Answer 1

A creditor who extends credit to a consumer to purchase a consumer good under a written security agreement obtains​ a "purchase money" security interest in the consumer good.

A purchase money security interest (PMSI) is a legitimate claim that enables a lender to repossess property financed with its loan or demand repayment in real money if the borrower defaults. It gives the lender need over other creditors cases.  

A PMSI is utilized by some commercial lenders and credit card guarantors just as by retailers who offer financing alternatives.