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- What is the difference between a credit sale (with a higher price as compared to the cash sale) and an interest based loan transaction? Explain it with an example.Which of the following type of loan is best used for temporary shortfalls of income? a. Secured loans b. Long Term Loan c. Line of Credit d. Short-Term LoanWhich of the following is true of an unsecured loan?A. They are exclusively for cars, houses, and other large purchasesB. Collateral could be collected by the lender if the debt is not paidC. They never have any interest added onto themD. Items of value that the borrowers owns are not at risk of repossession
- Which is not a metric used by lenders to measure the overall suitability of a loan: 1) Loan to value ratio 2) Debt service coverage 3) Debt yield. 4) Effective rent per square foot choose 1An advantage to the borrower of obtaining operating capital under a "line of credit" instead of with several single-payment loans is: A. the borrower pays interest on loan funds only for the time they are actually used B. the interest rate is usually lower C. expectations about how much will be repaid and when are more definite D. more total dollars can be borrowedFor statement profit and loss why the loan doesn't include in that statement
- Interest prepaid by the buyer, which may be used to reduce the stated interest rate the lender charges, are known as ▼ margins. points. payment caps. variable investments.There are two costs associated with extending credit; one is potential lost interest income also known as opportunity cost. What is the other cost?What is the main purpose of loan loss provisioning? Explain the concepts of incurred loss model and dynamic loan loss provisioning. What are the problems with the incurred loss model and how does the dynamic loan loss provisioning tries to address those problems?
- The borrowing base used to guarantee collateral on an operating line of credit is highly dependent on the valuation rates allowed on short-term assets by the lender. A. True B. FalseDefault Pay Yourself First Interest is a strategy in which saving is prioritized and made an essential cost in a budget occurs when a borrower is unable to meet the obligation of debt repayment. is the money that a borrower owes to a lender. It can be accrued through any form of borrowing - credit cards, mortgages, per is money received through sources such as employment, investments, or business transactions. is the percentage of a loan principal that lenders charge borrowers. is money set aside for big, unexpected expenses such as job loss or large medical bills. It provides a financial buffer that shiel is a plan for using income to meet financial obligations. It tracks how much income a person receives and details how that mo is the amount of money due to a loan before interest. is a financial arrangement in which money is borrowed for a purchase and paid back at a later date. It allows consumers to mo One of the most basic concepts of personal finance is being able to…What is the advantage of a variable-interest loan? Protects the borrower from rising interest rates Borrower can capitalize on a reference rate decrease Makes it easier for the borrower to plan for future payments Reduces the total interest payments Which of the following tools is used to analyze the industry attractiveness in the credit application process? PESTEL analysis Management analysis Ratios analysis SWOT analysis