What Does It Mean for a Loan to Be in Default

question 32

Multiple Choice

What does it mean for a loan to be in default?

• A)when the borrower of the a loan fails to repay on schedule according to a loan contract,without the agreement of the lender
• B)when the borrower of a loan fails to repay on schedule according to a loan contract,with the agreement of the lender
• C)when the lender of a loan fails to supplies the full amount of a loan to the borrower
• D)when the lender of a loan supplies the full amount of a loan to a borrower without any promise of being repaid
• E)when the lender of a loan fails to offer the promised sum

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Definitions:

Service Life

The expected duration or period an asset is considered useful and productive for its intended purpose.

Impairment Loss

A reduction in the recoverable value of an asset, below its carrying amount on the balance sheet, leading to a write-down of the asset's value.

Cash Inflows

Money received by a business from various sources, including sales, financing, and investments, over a period.

Technological Advances

Developments and improvements in technology that enhance productivity, efficiency, and provide new opportunities for businesses and individuals.