Question : Which of the following is a feature of a term loan?
Option 1: Flexible repayment period
Option 2: Interest rate is fixed for the entire tenure
Option 3: High interest rate
Option 4: No collateral required
Correct Answer: Interest rate is fixed for the entire tenure
Solution : The correct answer is (b). Interest rate is fixed for the entire tenure
A key feature of a term loan is that the interest rate is often fixed for the entire duration or tenure of the loan. This means that the borrower and lender agree upon a specific interest rate at the beginning of the loan, and it remains unchanged throughout the repayment period.
Question : Which of the following is not a feature of a term loan?
Option 1: Fixed interest rate
Option 2: Fixed repayment schedule
Option 3: Collateral security
Option 4: No maturity period
Question : Which of the following is a feature of a commercial bill?
Option 1: Low credit risk
Option 2: High interest rate
Option 3: Fixed maturity period
Question : Which of the following is not a feature of a fixed deposit account?
Option 1: High interest rate
Option 2: Fixed maturity period
Option 3: Flexible withdrawal option
Option 4: Penalty for premature withdrawal
Question : Which of the following is not a feature of a term deposit account?
Question : Which of the following is a feature of a fixed deposit account?
Option 1: Low interest rate
Option 2: Flexible withdrawal option
Option 4: No penalty for premature withdrawal
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