From the Perspective of an FI, Which of the Following

question 27

Multiple Choice

From the perspective of an FI, which of the following is an advantage of a floating-rate loan?

• A)Stable interest payments will be received throughout the loan period.
• B)The pre-specified interest rate remains in force over the loan contract period no matter what happens to market interest rates.
• C)The bank can request repayment of a loan at any time in the contract period.
• D)The default risk is completely eliminated.
• E)The interest rate risk is transferred to the borrower.

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Definitions:

Prosecution

The legal process of charging someone with a crime and conducting a trial to demonstrate their guilt or innocence.

Mental Illness Act

Legislation pertaining to the treatment, rights, and care of individuals with mental illnesses.

Mental Disease

A broad term encompassing various disorders that affect mood, thinking, and behavior, often requiring medical diagnosis and treatment.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, which can severely impact daily functioning and well-being.