首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Security is required on loans for several reasons. One of the most common is probably the borrower’s financial weakness. Such we
Security is required on loans for several reasons. One of the most common is probably the borrower’s financial weakness. Such we
admin
2012-01-26
69
问题
Security is required on loans for several reasons. One of the most common is probably the borrower’s financial weakness. Such weakness may be indicated by several factors, including heavy obligations to creditors, poor management, and insufficient income. Borrowers in this financial condition can strengthen their credit by pledging certain assets. Having a secured loan may also be a psychological advantage for a bank. As long as the borrower has greater equity in the pledged assets than does the bank and the bank is in a preferred position and can foreclose in the event the loan agreement is broken, the borrower has a strong incentive to repay the obligation. The length of a loan also has a bearing on whether it will be secured. As the term of the loan lengthens, the risk of non-repayment increases. Loans for purchasing real estate are nearly always secured, especially if the funds are borrowed for long periods of time, because of risk of non-repayment.
Unsecured loans are based more exclusively on the borrower’s integrity and financial condition, expected future income, and past record of repayment. Contrary to popular belief, the largest loans and the greatest dollar volume of loans made by some banks are often granted on an unsecured basis. The largest commercial borrowers are able to borrow on an unsecured basis. Some companies are considered by banks to be prime borrowers, and in many cases they receive the most favorable interest rate. Such companies have competent management, products and services that are well accepted in the marketable, relatively stable profits, and a strong financial condition. They provide their banks with financial statements from which it is relatively easy to determine their financial condition and keep track of their progress.
Business firms are not the only ones who borrow on an unsecured basis—many individuals enjoy this privilege. Persons who own their homes, have a steady job which they have held for years, and have a record of prompt payment both at the bank and at retail stores are commonly in a position to borrow on an unsecured basis. An applicant’s ability and willingness to pay are projected into various situations.
According to the passage, which of the following about the borrower’s financial weakness is false?
选项
A、Past record of repayment.
B、Low profitability.
C、Poor management.
D、Heavy obligations to creditors.
答案
A
解析
文章第一段提到One of the most common...and insufficient income. 说明借款人财务状况不佳的因素是由于公司管理不善、对债权人的大量债务,以及收入水平低。因此,A选项错误。
转载请注明原文地址:https://kaotiyun.com/show/4KYd777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
[A]cheek[B]dollar[C]menu[D]station[E]market[F]library[G]hospitalPeoplereadittoorderdishesinarestaurant.
JacklosthisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogeta
A、Yes,theycallme.B、Yes,severaltimes.C、Yes,Iwenttoseeyou,butyouwereout.B
Mr.Blackwasyoungandable.Thebosslikedhim.LastmonthhewassenttoChinaonbusiness.BeforehewentbackfromChina,h
Ihavenevertakenaplane.MyfriendLiPing,either.______ushasevertakenaplane.
What’stherelationshipbetweenbanksandclients?Whatservicesdobanksprovidetothepersonalcustomers?
Undertruelease,thecompanyorthebankwillholdthetitletothefacilities,receivetaxcreditifthereisany,sellfacili
ARedClauseDocumentaryCreditisaDocumentaryCreditwithaspecialconditionincorporatedintoitthatauthorizestheConfir
UnderCIFterms,thebillofladingwouldstategoods______.
Adraftislikeacheckthatcanbeendorsedbutitisn’tatitletogoods,like______.
随机试题
下列说法中错误的是()。
Asawriter,Walterwasvery______.
邪热久羁,灼伤真阴,症见时时发痉,舌干少苔,脉虚数,应选用:
男孩,4岁,患有支气管肺炎,住院后放弃已经学会的能够控制排尿的技能,出现尿床现象,其行为属于
以下哪种疾病不是慢性呼吸衰竭的病因()
下列关于地形、地势说法正确的有()。
甲公司为一家电生产企业,主要生产A、B、C三种家电产品。甲公司2015年度有关事项如下:(1)甲公司管理层于2015年11月制订了一项业务重组计划。该业务重组计划的主要内容如下:从2016年1月1日起关闭C产品生产线;从事C产品生产的员工共计150人,除
当室内一片喧哗声时,教师突然放低声音或停止说话,会引起幼儿的注意,这是()。
设f(x)的原函数F(x)>0,且F(0)=1.当x≥0时有f(x)F(x)=sin22x,试求f(x).
Wheredopesticidesfitintothepictureofenvironmentaldisease?Wehaveseenthattheynowpollutesoil,waterandfood,that
最新回复
(
0
)