The advantage of a "balloon payment" loan over a conventional loan  repayment plan is:   A. less total interest is paid B. the size of the payments is flexible C. the payments are smaller, except for the final one D. the interest rate is flexible

5. Sources of short-term financing Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Sources of short-term funds include banks, suppliers, securities firms, and insurance companies. The obligations are in the form of bank loans, trade credit, commercial paper, secured loans, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers will consider the costs of the various sources of financing as part of a cash management strategy. The following statement refers to a source of short-term credit. Select the best term to complete the sentence. as a source of financing is restricted to large firms with exceptionally good credit. The use of Newell Enterprises is a very large manufacturing company. Newell's financial managers use many sources of financing for the company's annual borrowings, which exceed $100 million. Newell's credit rating is excellent. At the moment, the…

What is MOST TRUE of DEFAULT RISK on a mortgage loan? It is always lower with lower interest rates. O It increases with greater leverage. O It increases with a lock-out provision. O It does not effect the borrower due to lack of recourse.

Part B: Choose the correct option for each question (loans) A) increased, increased B) increased, decreased C) decreased, increased D) decreased, decreased E) Increased, No change F) Decreased. No change Question 1. For a loan, what effect does decreasing the interest rate have on the interest paid and length of loan? 2. For a loan, what effect does increasing the interest rate have on the interest paid and length of loan? 3. For a loan, what effect does decreasing the number of compounding periods have on the interest paid and length of loan? 4. For a loan, what effect does increasing the number of compounding periods have on the interest paid and length of loan? 5. For a loan, what effect does increasing the frequency of payments have on the interest paid and length of loan? 6. For a loan, what effect does decreasing the frequency of payments have on the interest paid and length of loan? Answer [Ex: F) Decreased, No change)