Loans Which Are Initially Drawn Down to the Full Amount

question 8

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) interest only loans.
• C) fully drawn advances.
• D) business loans.

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Definitions:

Differential Cost

Refers to the difference in total cost that will result from selecting one option over another in decision-making situations.

Differential Revenue

The difference in revenue generated under two different scenarios or courses of action.

Further Process

Additional actions taken in the production process to refine or complete products for the market.

Differential Cost

The variance in expenses resulting from choosing between two options or adjustments in production amounts.