Ask Question
BusinessBusiness
30 January, 14:40

A loan's principal contains the assets you promise to give the bank if you do not repay a loan as agreed.

True or false?

+4
Answers (1)
  1. 30 January, 14:56
    0
    The statement is: False.

    Explanation:

    For banks, the principal refers to the amount due on a loan and it is used to calculate interest payments. In other words, it represents the amount of money individuals borrow. The assets individuals promise to give to banks if they cannot repay a loan is called collateral and they include houses, vehicles, investment accounts or any other valuable object.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A loan's principal contains the assets you promise to give the bank if you do not repay a loan as agreed. True or false? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by
Answers (1)
Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments may be unwilling to do so? A.
Answers (1)
A song where several people sing the same melody but each singer starts at a different time is an example of
Answers (1)
Initiatives intended to improve an organization's positive impact on society and the natural environment are called:
Answers (1)
When listing a reference on your resume, you should: A) Use a fancy font and eye-catching color B) Not list references on your resume - you should only mention that references are available to your potential employer if they should need them C) Use
Answers (1)
New Questions in Business
A country currently has an outstanding debt of $45 billion. Its current-year expenditures are $12 billion and its tax revenue is $14 billion.
Answers (1)
Yakov left his job as a plumber when his wife took a position in another region. the quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages.
Answers (1)
Luthan Company uses a plantwide predetermined overhead rate of $23.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $278,400 of total manufacturing overhead cost for an estimated activity level of 12,000
Answers (1)
Sweet Cream is an ice cream manufacturer. It sells Guilt-Free, a zero-calorie ice cream, which competes with Flavor Bell's Moo Sweet, a low-calorie ice cream. Flavor Bell reduces Moo Sweet's prices to match Guilt-Free's prices.
Answers (1)
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. finance/accounting B. research and development C. production/operations D. marketing
Answers (1)
Home » Business » A loan's principal contains the assets you promise to give the bank if you do not repay a loan as agreed. True or false?
Sign Up Forgot Password?