The term demand loan refers to a loan

A. that the lender can increase at any time.

B. that the lender can apply for and then receive later.

C. that has no maximum limit.

D. for which the entire balance must be paid immediately at the lender's request.

Question

Business

Alvarado

5 November, 01:28

The term demand loan refers to a loan

A. that the lender can increase at any time.

B. that the lender can apply for and then receive later.

C. that has no maximum limit.

D. for which the entire balance must be paid immediately at the lender's request.

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Answers (1)

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Kimberly Atkins · Answer 1

The term demand loan refers to a loan for which the entire balance must be paid immediately at the lender's request.

Answer: D

Explanation:

A demand loan lets the lender shorten the notice period for recalling the loan, thereby using it as a borrowing instrument. Upon immediate notification, the borrower has to repay the entire loan amount along with any interest associated with it. By means of this arrangement, the borrower is enabled towards loan repayment at any time sans any early penalty of repayment. To illustrate, overdraft arrangement is variable from the normal lending approach, having maturity date already determined along with the payable schedule of payments.

The term demand loan refers to a loanA. that the lender can increase at any time.B. that the lender can apply for and then receive later.C. that has no maximum limit.D. for which the entire balance must be paid immediately at the lender's request.

The term demand loan refers to a loan

A. that the lender can increase at any time.

B. that the lender can apply for and then receive later.

C. that has no maximum limit.

D. for which the entire balance must be paid immediately at the lender's request.