Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) With a discount loan, the borrower is required to pay the interest at the end of the loan period.
• B) Bridge loans are often quoted as discount loans with fixed interest rates.
• C) A bridge loan is another type of short-term bank loan that is often used to "bridge the gap" until a firm can arrange for long-term financing.
• D) After a natural disaster, lenders may provide businesses with short-term loans to serve as bridges until they receive insurance payments or long-term disaster relief.

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Definitions:

Medical Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, offering protection against high healthcare costs.

Vesting Rights

Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.

Pension Plan

A pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. The funds are invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.

Retirement Age

The age at which a person is eligible to retire and receive full pension benefits, typically set by government policies or employment agreements.