An Increase in Assets Is Considered a Source of Funds

question 53

True/False

An increase in assets is considered a source of funds.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for loans or deposits of a specific maturity.

Contractual Interest Rate

The interest rate specified in a loan agreement or bond indenture.

Issued Discount

A reduction from the nominal or face value of a security at the time it is issued.

Amortization

Amortization is the process of spreading out a loan into a series of fixed payments over time, or gradually writting off the initial cost of an intangible asset.