A single-payment loan:
A) is generally unsecured and does not have any collateral.
B) usually matures in one year or less.
C) usually matures in five to seven years.
D) is generally used to finance auto purchases.
E) is provided by sales finance companies.

Question

Quizplus · Accepted Answer

A single-payment loan, also known as a balloon loan, typically matures in one year or less. It is a type of loan that requires the borrower to repay the entire principal amount plus interest in one lump sum payment at the end of the loan term.

A Single-Payment Loan