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:

Trade Custom

Established practices and patterns of behavior that are widely accepted within a particular industry.

Contract

A contract between two or more entities that is recognized by law and entails shared responsibilities.

Merchantable

A term that describes goods of a quality that are fit for sale or suitable for a particular purpose.

Bar of Soap

A solid piece of cleansing substance used for personal hygiene, typically formed into a rectangular shape.