Paying off long-term debt by making installment payments is called:
A)foreclosing on the debt.
B)amortizing the debt.
C)funding the debt.
D)calling the debt.
E)None of the above.

Question

Quizplus · Accepted Answer

Amortizing a debt means paying it off over time through regular payments, often in equal installments. This method is commonly used for mortgages, car loans, and other long-term debts. Foreclosing on a debt means the lender seizes and sells the asset securing the debt (such as a home or car) to recoup the money owed. Funding a debt refers to borrowing money to pay off a debt, while calling a debt means the lender demands repayment in full immediately.

Paying Off Long-Term Debt by Making Installment Payments Is Called