The maturity of most bank loans is short term.Bank loans to businesses are frequently made as 90-day notes which are often rolled over, or renewed, rather than repaid when they mature.However, if the borrower's financial situation deteriorates, then the bank may refuse to roll over the loan.

Question

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Bank loans to businesses are typically short term and often made as 90-day notes that are rolled over. However, if the borrower's financial situation worsens, the bank may refuse to renew the loan.

The Maturity of Most Bank Loans Is Short Term