a.

Assets vs Liabilities:

Assets are valuable resources such as cash, inventory, and property that a business owns and expects
to provide future economic benefits. Liabilities are the company’s financial debts or obligations
resulting from past transactions, like loans or accounts payable. Assets and liabilities are categorized
based on their liquidity or duration (current or long-term). A company's financial health is assessed
by comparing assets to liabilities, where a surplus of assets suggests stability.

b. Secured vs Unsecured Assets:

Secured assets are backed by collateral, reducing lender risk, as in the case of mortgages or car
loans where the house or car is used as security. Unsecured assets, like credit card debts or
personal loans, have no collateral and present a higher risk for lenders, often carrying higher
interest rates. The presence or absence of collateral is a key differentiator in the terms and
conditions of these financial instruments.
c. Loan to Value (LTV) & Mark to Market (MtM):
LTV measures the loan amount against the value of the collateral asset, such as in mortgage
lending where a high LTV indicates a larger loan relative to the property's value, implying greater
risk. MtM is an accounting method that values assets at current market prices rather than
historical costs, providing an up-to-date assessment of financial standing. This method can lead
to fluctuations in financial reporting due to market volatility.