A Document Specifying the Terms and Conditions of a Bank

question 33

Multiple Choice

A document specifying the terms and conditions of a bank loan, including the amount, interest rate, repayment schedule, and any other terms or conditions of the loan is a

• A)compensating balance.
• B)commitment fee.
• C)commercial paper.
• D)trade credit.
• E)promissory note.

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Definitions:

Bound

Being legally or morally obligated to do something or restricted by some form of constraint.

Ratify

To formally approve or confirm an agreement or treaty, making it officially valid.

Principal

The original amount of money invested or loaned, not including profits or interest.

Agent's Unauthorized Contract

A contract or agreement made by an agent without the proper authority or permission from the principal, often raising questions of enforceability and liability.