The Return on a Loan Is Measured by the So-Called

question 35

True/False

The return on a loan is measured by the so-called all-in-spread (AIS), which measures annual fees earned on the loan by the FI plus the annual spread between the loan rate paid by the borrower and the FI's costs of funds.

---

Definitions:

Anarchic Organization

An organizational model characterized by a complete absence of structured hierarchy and formal rules, where decision-making and actions are decentralized.

Theocratic Group

An organization or society that is governed by religious leaders and based on religious laws.

Atheist Group

A community or organization of individuals who do not believe in the existence of gods or a divine being.

Totalitarian

A political system in which the state holds total authority over society and seeks to control all aspects of public and private life.