An Origination Fee​

question 28

Multiple Choice

An origination fee​

• A) ​increases the yield on a loan to the bank
• B) ​increases the amount of money the firm may borrow
• C) ​reduces the cost of a loan to the borrower
• D) ​increases the discount on commercial paper

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Definitions:

Account Type

A classification system used within accounting to differentiate between the various financial transactions, assets, liabilities, and owners' equity carried out or held by a business.

Increases

Refers to the growth or rise in numbers, values, quantities, or activities.

Decreases

A reduction in size, quantity, or level of something.

Equity Accounts

Accounts that represent the owner's or shareholders' interest in a company, reflecting the residual assets of the company after liabilities are deducted.