The 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.
a. True
b. False

Question

Quizplus · Accepted Answer

Most bank loans to businesses are short-term, often structured as 90-day notes that can be renewed, but renewal depends on the borrower's financial health.

The Maturity of Most Bank Loans Is Short Term