AAEC 3302 Quiz #4
T/F Annual percentage rate (APR) does not have the effect of compounding.
False
T/F Secured loans get lower interest rates since they are risky
False
T/F Short term loans are listed under non-current liabilities on the balance sheet.
False
T/F Truth in Lending Act does not require that APR be disclosed to borrower by the lender.
False
T/F: With an unsecured loan, if a borrower cannot make repayments, the lender has the legal right to take possession of mortgaged assets
False
Which of the following is not a phase in the loan process?
Financing
T/F Intermediate and long term loans are listed under non-current liabilities on the balance sheet.
True
T/F Security agreement includes precise description of the collateral for the loan.
True
Short term loans are generally repayable _____. Intermediate term loans are generally repayable _____. Long term loans are generally repayable _____.
within a year or less; between one and ten years; over more than ten years.
A promissory note is __________
All of the above.