maturity of most bank loans is short term Bank loans to businesses are frequently made as 90-day notes which are often rolled over, or renewed, rather than repaid when they mature However, if the borrower's financial situation deteriorates, then the bank may refuse to roll over the loan.

Question

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Most bank loans to businesses have a short-term maturity, often in the form of 90-day notes that are commonly rolled over. If the borrower's financial situation worsens, the bank may not renew the loan.

Maturity of Most Bank Loans Is Short Term Bank Loans