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Car Loans Typically Have Short Maturities from Two to Seven

Question 74

Multiple Choice

Car loans typically have short maturities from two to seven years because


A) the economic value of the collateral for the loan declines quickly.
B) the comparative value to leases is the most competitive within that period.
C) it matches the allowable IRS limits on deductible amortization.
D) the insurable value diminishes at that point.

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