Which of the Following Is True of Fixed Payment Loans

question 49

Multiple Choice

Which of the following is 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:

Bank Statement

A bank statement is a summary of financial transactions that occurred over a certain period of time in a bank account, provided regularly by the bank to the account holder.

Transactions

The act of conducting business or commercial activities, often involving the exchange of goods, services, or funds.

Quarterly

Pertaining to or occurring every three months.

Legible Copy

A copy of a document that is clear enough to be read easily and accurately.