Which of the following are TRUE of fixed payment loans?
A) The borrower repays both the principal and interest at the maturity date.
B) Installment loans and mortgages are frequently of the fixed payment type.
C) The borrower pays interest periodically and the principal at the maturity date.
D) Commercial loans to businesses are often of this type.
B
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Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is:
a. $10.00. b. $500. c. $5,000. d. $1,010.
The income-expenditure multiplier leads to greater than one-for-one changes in output when autonomous spending changes because:
A. autonomous spending supports more output than induced spending. B. multiple deposits are generated when new reserves are produced through fractional reserve banking. C. planned changes in inventories signal producers to adjust the level of output. D. the direct changes in spending change the income of producers which leads to additional changes in spending.