iCEV Personal Finance Practice Test 2025 – All-in-One Guide to Mastering Your Finance Exam!

Question: 1 / 400

Which term describes the right to keep possession of property of another until a debt owed by the person is discharged?

Mortgage

Lien

The term that describes the right to keep possession of the property of another until a debt owed by that person is discharged is indeed a lien. A lien is a legal right or interest that a lender has in the borrower's property, granted until the obligation is satisfied.

Liens can arise in various situations, such as with mortgages, where the lender has a lien on the property until the mortgage is fully paid off. This legal claim allows the creditor to retain possession of the property or claim a right to it, ensuring that they have a means of recovering the amount owed.

This concept is fundamental in personal finance and legal contexts, as it provides security for lenders while also outlining the rights and obligations of borrowers regarding their property. Understanding liens is crucial for navigating debt situations, property ownership, and financial agreements.

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Debt

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