Which of the Following Are True of Fixed Payment Loans

question 5

Multiple Choice

Which of the following are true of fixed payment loans?

• A) The borrower repays both the principal and interest at the maturity date.
• B) Installment loans and mortgages are frequently of the fixed payment type.
• C) The borrower pays interest periodically and the principal at the maturity date.
• D) Commercial loans to businesses are often of this type.

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Definitions:

Calibration Curve

A plot of accuracy against confidence judgments. The more the curve approaches a 45-degree line, the better the “calibration” or “fit” between accuracy and confidence.

Participants' Confidence

The level of belief individuals participating in an experiment or study have in their responses or judgments.

Deductive Reasoning

A logical process where a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Underconfidence

A cognitive bias in which individuals underestimate their knowledge, abilities, or performance.