A(n)____ is generally obtained from a bank or insurance company and the borrower agrees to make a series of payments consisting of interest and principal.
A) putable bond
B) bankers acceptance
C) income bond
D) term loan
E) certificate of deposit

Question

Quizplus · Accepted Answer

A term loan is a loan that is obtained from a bank or insurance company, and the borrower agrees to make a series of payments consisting of interest and principal. This type of loan has a fixed repayment schedule and a specified end date, as opposed to a revolving line of credit. The other options listed (putable bond, bankers acceptance, income bond, and certificate of deposit) are all types of financial instruments, but they are not the same as a term loan.

A(n)____ Is Generally Obtained from a Bank or Insurance Company