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:

Another Person

Refers to an individual or entity distinct from the parties directly involved in an agreement or legal case.

Security Deposits

Funds held by a landlord or property manager for a potential need related to rental property damage or non-payment, to be returned or applied as specified in a rental agreement.

Written Accounting

A detailed, formal report that records financial activities and transactions, typically prepared by an accountant or auditor.

Implied Warranty

An unwritten guarantee that the product or service sold is fit for the purpose intended and meets the buyer's expectations.