Answered: Prepayment of loans may be initiated by…

Prepayment of loans may be initiated by a. borrowers and lenders b. bank auditors c. the central bank d. bank regulators

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Prepayment of loans may be initiated by

borrowers and lenders

bank auditors

the central bank

bank regulators

Expert Solution

Step 1

Prepayment of a loan means the pay off the loan before the due date.

Prepayment will save interest payments for later dates.

Step by step

Solved in 2 steps

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