Longer-term borrowings are used to finance the purchase of property or equipment that serve as collateral for the loan.

Name: Longer-term borrowings are used to finance the purchase of property or equipment that serve as collateral for the loan.
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Longer-term borrowings, such as mortgages, are often used to finance the purchase of property or equipment that serves as collateral for the loan. This allows the lender to mitigate their risk and provide lower interest rates to the borrower.

Longer-Term Borrowings Are Used to Finance the Purchase of Property