Loans Which Are Initially Drawn Down to the Full Amount

question 32

Multiple Choice

Loans which are initially drawn down to the full amount and repaid over the term of the loan by a fixed repayment schedule are known as:

• A)instalment loans
• B)fully drawn loans
• C)interest only loans
• D)variable rate interest loans

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Definitions:

Retirement Funds

Retirement funds are financial plans that allow individuals to save money for their retirement years, typically consisting of a mix of stocks, bonds, and other assets.

Investment Policy Statement

A document drafted between a portfolio manager and a client that outlines general rules for the manager, including the client's objectives, risk tolerance, time horizon, and liquidity needs.

Scope and Purpose

"Scope and Purpose" defines the aims and boundaries of a project, policy, program, or strategy, outlining what it intends to achieve and the extent of its application.