A Term Loan Is Usually Characterized by

question 5

Multiple Choice

A term loan is usually characterized by

• A) a maturity of one to seven years.
• B) a variable interest rate.
• C) monthly or quarterly installment payments.
• D) all of these options are true.

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Definitions:

Payment

The transfer of money, goods, or services in exchange for goods, services, or both, as part of a transaction.

Conditional Sales Agreement

A sales contract in which the buyer takes possession of the item immediately but does not gain ownership until the full price is paid.

Equity Of Redemption

The equitable right of a mortgagor to acquire the title to the mortgaged property by payment of the debt secured by the mortgage.

Arrears

A state of being behind in fulfilling obligations, such as payments on a loan, rent, or utilities.