The period over which the borrower may take down the loan is known as the
A)drawdown
B)all-in-costs
C)inverse floater
D)swap

Question

Quizplus · Accepted Answer

The term "drawdown" refers to the period over which the borrower may take down the loan, meaning when they can access the funds. This is typically determined by the terms of the lending agreement. All-in-costs refer to the total cost of a loan or debt instrument, including interest, fees, and other expenses. An inverse floater is a type of bond where the coupon rate moves in the opposite direction of interest rates, and a swap is a financial contract where two parties agree to exchange one stream of cash flows for another. Neither of these choices relates to the period of time over which a borrower may take down a loan, making A the correct answer.

The Period Over Which the Borrower May Take Down the Loan