A loan is:
A) a financial asset that represents partial ownership of a company.
B) a payment made periodically to all shareholders of a company.
C) an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
D) a promise by a bond issuer to repay a loan at a specified maturity date and to pay periodic interest at a specific percentage rate.

Question

Quizplus · Accepted Answer

A loan is an agreement in which a lender gives money to a borrower, who agrees to repay the loaned amount plus interest. Option A describes a share of ownership, option B describes a dividend payment to shareholders, and option D describes a bond.

A Loan Is