Consolidation Loans

question 94

Multiple Choice

Consolidation loans

• A)have the advantage of a single interest rate on the full amount of your selected debts
• B)usually have shorter terms than your initial debts
• C)usually have lower interest rates because you are considered to be a lower risk for the lender
• D)are best used for low or no interest debts
• E)usually pay less overall when you extend the term of payment

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Definitions:

Capital Account

An account on a nation's balance of payments that records all transactions involving the purchase or sale of assets, or in business, the account showing the net worth of a business entity.

Bonus

An extra payment given to employees as an incentive or reward beyond their regular compensation.

Admission Fee

A charge for entry, often used in the context of events, clubs, or institutions.

Capital Balance

The amount of money in a firm's capital account, reflecting the owner's initial investment plus retained earnings.