Another Name for Credit When Loans Are Made on a Continuous

question 124

Multiple Choice

Another name for credit when loans are made on a continuous basis and borrower is billed periodically for at least partial payment is known as:

• A)a line of credit.
• B)convenience credit.
• C)revolving credit.
• D)installment credit.
• E)bank card credit.

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Definitions:

Sensitivity Analysis

The process of analyzing the impact of varying key assumptions or input variables on the outcome of a decision or model.

Annual Net Cash Flow

The difference between a company's total cash inflows and outflows over one fiscal year, reflecting its ability to generate cash.

Average Rate Of Return

A method of evaluating a capital investment proposal that focuses on the expected profitability of the investment; computed as average annual income divided by average investment. Also referred to as accounting rate of return.

Average Income

The mean amount of earnings generated over a specified period of time, taking into account all revenue sources.