The Following Information Provides Insight to a Lender About the Applicant's

question 29

Multiple Choice

The following information provides insight to a lender about the applicant's creditworthiness except

• A)personal/family matters
• B)housing
• C)employment
• D)income
• E)all of the above provide insight

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Definitions:

Maturity Value

The total amount that will be paid to an investor at the maturity date of a debt instrument, including principal and any accrued interest.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned, or the income earned on deposited funds.

Bank Discount

What the bank charges to hold a note until maturity (Maturity Value – Proceeds).

Discount Period

The window of time during which a payment can be made at a reduced rate.