A term loan is usually characterized by:
A) maturity of ten to fifteen years.
B) a zero interest rate.
C) monthly or quarterly instalment payments.
D) securitization of inventory.

Question

Quizplus · Accepted Answer

Term loans typically require monthly or quarterly payments of principal and interest. A) is incorrect as maturity can vary based on the terms of the loan. B) is incorrect as loans typically come with an interest rate. D) is incorrect as securitization of inventory refers to a separate financial practice.

A Term Loan Is Usually Characterized By