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The Difference Between a Best-Effort Loan and an Underwritten Loan

Question 24

Multiple Choice

The difference between a best-effort loan and an underwritten loan is that:


A) an underwritten loan has a guaranteed interest rate and a best-effort loan has a flexible interest rate.
B) a best-effort loan requires that the borrower make its best-effort to repay the loan on schedule while an underwritten loan requires that specific payments be made on the loan.
C) a best-effort loan offers the best interest rate that the lender can offer,but an underwritten loan guarantees that a specific interest rate will be charged.
D) an underwritten loan is guaranteed to be made,while a best-effort loan is not guaranteed and will only be made if enough banks can be found to participate in the loan.

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