As long as you have a strong reason for taking a loan, there is no need to understand the terms of the loan. Is it true?

Q: (a) Cite an example of a contract which is contrary to morals, (b) Can the nullity of the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Why is it essential to know different kinds of loans?

A: A loan helps in determining the money supply and helps new businesses in the lending process. The…

Q: If a friend who’d never heard of amortization before asked you to explain how loan payments work,…

A: Amortization is a technique used in accounting to decrease the book value of such a loan or…

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: What is meant by a participation loan? What does the lender participate in? Why would a lender want…

A: Participation loans: It is a type of loan in which the lender shares the net operating income of the…

Q: Which of the following does not relate to credit risks?   Select one: A. Credit risk is the…

A: Before answering the question, we should understand what Credit Risk means  Credit Risk: It is the…

Q: What is the status of a lender on collateral if they fail to perfect their security interest? What…

A: A security interest in an asset that cannot be claimed by any other party is called a perfected…

Q: Which of the following is true of an unsecured loan? A. They are exclusively for cars, houses, and…

A: Loan can be defined as money that somebody lends other person in exchange of some interest that is…

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: what are two types of credit

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Collateral does not reduce the risk of a loan per se, because A. it is not part of the loan…

A: Collateral = It refers to asset, being pledged by bank against the loan given to its customer in…

Q: 1. Loans typically come with restrictions on the borrower called which are intended to protect the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following has the highest relative likelihood of being defaulted in paying the…

A: The interest expense and earnings before interest and income taxes details for each of the company…

Q: The two types of personal loans are Installment Loans and Demand Loans. True False

A: Introduction : In simple words, personal loans refers to the loans which are given to the borrower…

Q: There is a formula that will find the APR, i, of a single payment loan but not for a series of…

A: The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers…

Q: hich of the following is not a way in which banks lend short-term unsecured loans? a. Through a…

A: Banks give short term credits to the business to increase the business and grow business and provide…

Q: financial impact of lily taking out this payday loan? how do borrowers get trapped in an inescapable…

A: Payday loans are non-secured ash advances for small sums of money with extremely high-interest rates…

Q: Why should you and should not sign a personal guarantee for a business loan?

A: The personal guarantee for a business loan refers to the assurance by the company or a business…

Q: Your company provides credit to customers. Someof these customers default on their loans, with…

A: Discriminant analysis is the analysis which provide the permission to organization in determining…

Q: If a consumer with a relatively low credit score applied for a loan from your bank, what other…

A: WHAT IS CREDIT CRITERIA- Credit criteria area unit the factors employed by lenders to work out…

Q: Related to ethics and contracts, why do payday loans appear to be an ethical issue?

A: Payday loans are small ticket loans for a short duration. The borrower pays back the loan when he…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Why would a lender be willing to make a participation loan?

A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…

Q: What does it mean when a lender accelerates on a note? What is meant by forbearance?

A: Promissory note is written by the borrower and sent to the lender. In promissory note, borrower…

Q: Explain the 5 C’s that creditors look for in borrowers. Which ones are the most important?  Which…

A: A borrower is an individual or an institution that borrows money or loan from the lender for a…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: What is interest earned by a lender but not yet collected? As well as what is interest earned by a…

A: Lender is the person who lends or provides money to other person in return of some interest as well…

Q: When do you considered a loan, receivables are impaired?

A: Impairment refers to diminution in realizable value of the asset. It may be due to various factors…

Q: hat may a person lose in addition to the goods if she or he fails to keep up the payments on a…

A: A loan is referred as the amount provided to one party to another where the principal amount with…

Q: What are the pros and cons of loaning?

A: Loaning is a process of lending money. An interest rate is charged by the lenders on the money lent…

Q: f a bank client requests a loan for the acquisition of real estate, what type of loan is he/she…

A: A. A refinance loan involves revision of loan terms. For example: If there is a drop in interest…

Q: Which of the following does not relate to credit risks?  a. Credit risk is the possibility of losing…

A: First of all we need to understand the meaning of Credit risk- Credit risk is the probability of…

Q: In your own opinion what would be the outcome or consequences if a debtor failed to settle thier…

A: A debt default happens when the borrower fails to pay the money back to the lender at the time when…

Q: What are mortgage discount points?  When does it make sense to pay points on a loan?  How can a…

A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…

Q: True or false. Rate of return is the interest earned on the unpaid balance of an amportized loan

A: Rate of return is calculated to ascertain the profit and loss of an investment. It is expressed in…

Q: How does a short term loan works?

A: Definition : A short term loan is a variety of loan that's obtained to support a short lived…