Term loans often have a ________ feature,which means that after three to five years,the full amount of principal is due before the amortized payments fully repay the loan.
A)parachute
B)covenant
C)balloon
D)handcuff

Question

Quizplus · Accepted Answer

The term in the question "full amount of principal is due before the amortized payments fully repay the loan" describes a balloon feature. This means that the borrower must pay the remaining balance or refinance the loan before the term expires.

Term Loans Often Have a ________ Feature,which Means That After