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.