When a lender speaks of "discounting," the lender is probably referring to:
A: The process of determining the actual yield of a given loan by adjusting the variable interest rate;
B: The difference between the nominal interest rate and the effective interest rate on a specific loan;
C: The process of determining the effective interest rate;
D: The loan proceeds disbursed by the lender are less than the face value of the note.
Answer: D: The loan proceeds disbursed by the lender are less than the face value of the note.
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Economies of scope involve the ability to lower the average cost of operations by expanding the output of financial services.
a. true b. false
An owner's property was seized because it was used for drug sales. Which statement is correct?
A. The owner is entitled to the fair market value of the property. B. If the owner is not found guilty of a felony, the property must be returned. C. Innocence of any knowledge of the use would be a defense against seizure. D. None of these statements is correct.