______ Security Refers to the Borrower's Assurance to Lenders That

question 90

Multiple Choice

______ security refers to the borrower's assurance to lenders that loans will be repaid.

• A) Loan
• B) Note
• C) Debt
• D) Equity

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Definitions:

Variable Rate

An interest rate that changes periodically over the lifetime of the loan based on an underlying benchmark or index.

Prime Rate

The interest rate that banks charge their most creditworthy customers, often used as a benchmark for other loans.

Risk Profile

An assessment of an entity's or individual's willingness to take risks, as well as the threats to which they are exposed.

Financial Risk

The potential for financial loss in an investment or business operation.