The ____ Legally Binds the Borrower and Lender to All

question 55

Multiple Choice

The ____ legally binds the borrower and lender to all items and conditions of an installment contract.

• A) note
• B) contract
• C) security agreement
• D) sales contract
• E) bond

---

Definitions:

Incentive Bonus

A form of additional compensation paid to an employee as a reward for achieving certain goals or exceptional performance.

Gross Return

The total return on an investment before any deductions for fees or expenses.

Expense Ratio

A measure of what it costs an investment company to operate a mutual fund, expressed as a percentage of the fund's average assets per annum.

Total Expense Ratio

It quantifies the total cost of fund management and operating expenses, expressed as a percentage of the fund’s total assets.