Which of the Following Is Not a Characteristic of a Loan

question 56

Multiple Choice

Which of the following is not a characteristic of a loan commitment?

• A)The maximum amount of the loan is negotiated at the time of the loan agreement.
• B)The interest rate on fixed-rate loans is determined at the time of the loan is actually taken down.
• C)Floating-rate loans transfer the interest rate risk to the borrower.
• D)The time period for which the loan is available is negotiated at the time of the loan agreement.

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Definitions:

Knowledge Requires

The necessity of certain conditions or elements to possess understanding or awareness about something.

Evidence

The available body of facts or information indicating whether a belief or proposition is true or valid.

Visual Experiences

Perceptions and interpretations of the surrounding environment through the sense of sight.

Remember

The cognitive process of recalling information, experiences, or people from one's past.