A Loan Whose Principal Is Not Due to Be Paid

question 158

Multiple Choice

A loan whose principal is not due to be paid back until the loan's term ends and in which only interest is paid periodically during the life of the loan is called a (or an) :

• A)working capital loan.
• B)project loan.
• C)bullet loan.
• D)interim construction loan.
• E)None of the options is correct.

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Definitions:

Reciprocity

A social exchange principle where the actions of one individual lead to a reciprocal action by another, often seen in cooperative behaviors amongst animals and humans.

Altruism

Selfless concern for the well-being of others, where individuals may act to benefit others even at a cost to themselves.

Kin Selection Theory

A theory in evolutionary biology that predicts organisms will behave altruistically towards their relatives to increase the chances of their genetic traits being passed on to future generations.

Cooperative Hunting

The action of different individuals or species working together to hunt prey, increasing their success rate compared to solo efforts.