Which of the following is true of installment loans?
A)Installment loans require the principal to be repaid in a single payment.
B)Installment loans,like home equity loans,offer the benefit of tax deductibility on the interest paid on them.
C)Installment loans are secured using only second mortgages.
D)Installment loans are issued only by the federal government.
E)Installment loans are revolving credit lines from which consumers can borrow,repay,and reborrow.

Question

Quizplus · Accepted Answer

Installment loans, like home equity loans, offer the benefit of tax deductibility on the interest paid on them. Option A is incorrect as installment loans involve repayment of principal and interest in equal installments over the loan term. Option C is incorrect as installment loans can be secured using a variety of assets, not just second mortgages. Option D is incorrect as installment loans can be issued by various financial institutions and not just by the federal government. Option E is incorrect as it describes a revolving credit line, which is a different type of loan.

Which of the Following Is True of Installment Loans