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Term Loans Look Primarily to the Flow of Future Earnings

question 41

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Term loans look primarily to the flow of future earnings of the borrowing business firm to amortize and retire its loan.


Definitions:

Unemployment

A situation where individuals who are capable of working and willing to work cannot find jobs.

Labor Force Participation Rate

This term refers to the percentage of the working-age population that is either employed or actively looking for work.

Discouraged Workers

Individuals who are not actively seeking work because they believe no jobs are available for them or there are no jobs for which they would qualify.

United States

A country in North America consisting of 50 states, characterized by a diverse geography, culture, and economy.

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