Author Question: Some lenders require the borrower to pledge property as security for a loan. This property is ... (Read 226 times)

krzymel · **on:** Jun 24, 2018

Some lenders require the borrower to pledge property as security for a loan. This property is referred to as
A) an installment.
B) equity.
C) a down payment.
D) collateral.

Question 2

Which of the following reasons best describes why a seller adds a finance charge to the cash price when calculating the installment price?
A) To penalize the customer for not paying cash.
B) To cover the extra cost of doing business on the installment plan.
C) To offset the interest paid to the customer.
D) To cover the higher prices charged by the seller's suppliers for dealing with installment plans.