____ loans are extended primarily to finance the purchase of fixed assets such as machinery.

Question

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Term loans are specifically used to finance the purchase of fixed assets such as machinery, equipment, land, buildings or vehicles. The repayment period for these loans is usually longer and they are typically secured by the assets being financed. Working capital loans, on the other hand, are used to finance a company's day-to-day operations and are usually repaid within a year. Federal fund loans are short-term loans made between banks or financial institutions to maintain their reserve requirements, and direct leases are agreements in which the lessor purchases and owns the asset and rents it to the lessee for a specified period.

____ Loans Are Extended Primarily to Finance the Purchase of Fixed