When a Loan Is Amortized, It Means The

question 57

Multiple Choice

When a loan is amortized, it means the:

• A) borrower is in default.
• B) principal and interest are paid off by the borrower over the life of the loan.
• C) interest is due entirely at the maturity date.
• D) principal in never repaid, only interest.

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Definitions:

Subcontracting

The practice of hiring a third party to perform tasks, provide services, or conduct operations that are normally or could be done in-house.

Predictable Variability

Patterns or changes in demand, supply, or other business factors that can be anticipated based on historical data or known trends.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Supply And Demand

A fundamental economic concept that describes the relationship between the quantity of a commodity available and the quantity of that commodity people are willing to buy at certain price levels.