Which of the Following Is Not a Characteristic of a Loan

question 5

Multiple Choice

Which of the following is not a characteristic of a loan commitment?

• A)The maximum amount of the loan is negotiated at the time of the loan agreement.
• B)The interest rate on fixed-rate loans is determined at the time of the loan is actually taken down.
• C)Floating-rate loans transfer the interest rate risk to the borrower.
• D)The time period for which the loan is available is negotiated at the time of the loan agreement.
• E)In a floating-rate loan the borrower pays interest rate in force when the loan is actually taken down.

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Definitions:

Best Practices

Methods or techniques that have been consistently shown through research and experience to yield superior results.

Dominant Group

Refers to the most powerful, influential, or numerous group within a society, organization, or category, often setting norms and standards.

Stereotypical False Assumptions

Erroneous beliefs or ideas that are oversimplified and generalized, lacking accuracy or factual grounding.

Task-oriented Role

A role within a team that focuses on the completion of tasks and the achievement of goals, prioritizing efficiency and effectiveness.