In Which Type of Loan Does the Borrower Initially Receive

question 62

Multiple Choice

In which type of loan does the borrower initially receive the present value of the future lump sum loan repayment amount?

• A)Pure discount loan
• B)Both pure discount and interest-only loans
• C)Amortized loan
• D)Both interest-only and amortized loans
• E)Interest-only loan

---

Definitions:

Active Voice

A sentence construction where the subject of the sentence performs the action expressed by the verb, making the writing clearer and more direct.

Password

A secret word or phrase used to verify the identity of a user before granting access to a computer system or digital account.

Completing

The act of finishing or bringing a task or activity to a conclusion.

Adaptation

Adaptation means making adjustments or modifications to something to suit a new environment or different conditions, or the process of adjusting to those changes.