In Which Type of Loan Does the Borrower Initially Receive

question 95

Multiple Choice

In which type of loan does the borrower initially receive the present value of the future lump sum loan repayment amount?

• A)Pure discount loans
• B)Both pure discount and interest-only loans
• C)Amortized loans
• D)Both interest-only and amortized loans
• E)Interest-only loans

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Definitions:

Response Bias

A systematic error in survey responses, often due to the wording of questions or the respondent's desire to present themselves in a favorable light.

Nonresponse Bias

A bias in survey or research results occurred when individuals selected for participation do not respond, potentially leading to an unrepresentative sample.

Voluntary Response Bias

A bias in survey results that occurs when participants self-select to respond, leading to non-representative samples.

Undercoverage

A bias in statistics that occurs when some members of the population are inadequately represented in the sample.