The Type of Loan Whereby the Borrower Makes Interest Only

question 55

Multiple Choice

The type of loan whereby the borrower makes interest only payments during the life of the loan with the entire principal due for the final payment is called

• A) a discounted loan.
• B) an amortized loan.
• C) a term loan.
• D) a partially amortized loan.

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Definitions:

Amygdala

A part of the brain's limbic system involved in emotion regulation, fear processing, and the formation of emotional memories.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities, including temperature control, hunger, and circadian rhythms.

Autonomic Subdivision

A part of the nervous system that controls involuntary bodily functions, such as heart rate, digestion, and respiratory rate.

Sympathetic Nerves

Part of the autonomic nervous system that often prepares the body for rapid action in response to stress by accelerating the heart rate and increasing blood pressure, among other functions.