A Balloon Payment

question 95

Multiple Choice

A balloon payment

• A)is an up front payment to obtain a loan.
• B)may be required by the bank at about midway in the loan term.
• C)may be due at any time during the term of a loan.
• D)is used to lift (remove)a loan covenant.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the payer's ledger but not yet cashed or cleared by the bank.

Checkbook

A book containing blank checks and a register for recording checks written and deposits made.

Electronic Conveniences

Tools and services provided digitally that simplify tasks and transactions, often making daily activities more efficient through technology.

Financial Statement

A proper journal that captures the flow of financial transactions and the economic positioning of an entity, whether a business, an individual, or another type.