The Payment of Principal and Interest on a Loan Is

question 5

True/False

The payment of principal and interest on a loan is called "debt service."

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Definitions:

Negotiable Instruments

Written documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, which can be transferred by endorsement.

Drawee

The party in a financial transaction who is directed to pay a certain sum of money in a draft or check, typically a bank.

Forged Indorsement

A fraudulent signature, often on the back of a negotiable instrument like a check, intended to transfer its ownership.

Conversion

An unauthorized act that deprives an owner of their property without their approval, often involving theft or misuse of the property.