Loans in Which There Is No Fixed Number of Payments

question 57

Multiple Choice

Loans in which there is no fixed number of payments and the interest is calculated on the unpaid balance at the end of each payment period are referred to as:

• A) closed-end loans
• B) average daily balance loans
• C) basic installment loans
• D) open-end loans

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Definitions:

Negligence

Negligence is the failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for any damages caused.

Duress

A condition in which a person performs an act as a result of violence, threat, or other pressure against the person, rendering any agreement made under such conditions potentially voidable.

Criminal Lawsuit

A legal proceeding brought against an individual or entity accused of committing a crime, with the intention of achieving a formal judgment of guilt.

Undue Influence

A situation in which an individual is able to exert a level of influence over another person, typically in a way that undermines the individual's free will or judgement, often a concern in contract law and wills.