Choice "B" is correct.  Attachment of a security interest requires: (i) value given by the creditor, (ii) the debtor's having rights in the collateral, and (iii) an agreement to create the security interest evidenced either by a written security agreement describing the collateral and authenticated (e.g., signed) by the debtor or by the creditor's taking possession of the collateral.  When a creditor takes possession, no written security agreement is required. Choice "d" is incorrect. Attachment of a security interest requires: (i) value given by the creditor, (ii) the debtor's having rights in the collateral, and (iii) an agreement to create the security interest evidenced either by a written security agreement describing the collateral and authenticated (e.g., signed) by the debtor or by the creditor's taking possession of the collateral.  The value of the obligation being collateralized is irrelevant.  The examiners are trying to trick you here with the dollar threshold for the writing requirement under the Statute of Frauds for a contract for the sale of goods.Choices "a" and "c" are incorrect. Attachment of a security interest requires: (i) value given by the creditor, (ii) the debtor's having rights in the collateral, and (iii) an agreement to create the security interest evidenced either by a written security agreement describing the collateral and authenticated (e.g., signed) by the debtor or by the creditor's taking possession of the collateral.  It does not matter that the collateral is highly perishable, subject to price fluctuations, or subject to a purchase money security interest.