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
31
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.
Security is required on loans so that ______.
选项
A、the lending bank can enjoy higher interest receipts from the loan
B、the borrower is more willing to pay back the money
C、the funds borrowed will be repaid within a shorter period of time
D、more prime borrowers are attracted
答案
B
解析
文章第一段提到As long as the borrower...strong incentive to repay the obligation.发放贷款时银行要求借款人提供抵押是为了提高贷款的安全性,在心理上给予银行一定的安全感,一般借款人在提供抵押品之后其还款意愿会有所提高。
转载请注明原文地址:https://kaotiyun.com/show/aKYd777K
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
FEIFEIELEVATORSisoneoftheleadingelevatorcompaniesintheworldwithmorethan120branchcompanies(分公司)aroundtheglobe.
I’llwritebackassoonasI______yourletter.
JacklosthisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogeta
Mr.andMrs.RajahHassimweregoingtoeatout.Mr.Hassimtelephonedinthemorningandreserved(预定)atableinSpringRestau
ConsideringpurchasingKHCompany,youareevaluatingKH’srevenuegeneralizingability.Thenthefollowinginventoryvaluation
Explain:"EqualincreasesingovernmentspendingandtaxrevenuesofndollarswillincreasetheequilibriumGDPbyndollars".
Tofinancethenationaldebt,thegovernmentissuesavarietyofdebtsecurities.ThemostwidelyheldliquidsecurityistheTr
WemeetsthechallengeofglobalizationTenyearsago,USbankersandbrokerstalkedaboutglobalization.Capitalbarriersw
Afinancialmarketconsistsofforeignexchangemarket,moneymarket,bondmarketandequitymarket.Thelasttwomarketsusuall
Theimporterwillrequireafullsetofbillsofladinginordertoobtainthegoodsfromoverseasport.Thebillsofladingcan
随机试题
下列民族自治区中,成立时间最早的是()。
其穴所属:临床定取方法是:
急性盆腔炎的叙述不正确的是()
颞下颌关节脱位病例当中,最常见的类型是
锚具的静载锚固性能应满足()的力学性能要求。
下列不属于业主方项目管理的是:()。
甲公司持有乙公司80%的股权,能够对乙公司实施控制,2016年12月31日,乙公司无形资产中包含一项从甲公司购入的商标权。该商标权系2016年4月1日从甲公司购入,购入价格为860万元(不含增值税)。乙公司购入该商标权后立即投入使用,预计使用年限为6年,预
在实施集权与分权相结合型财务管理体制的企业中,下列权利中,不应该分权的是()。
某测验分数服从正态分布,其平均数为65分,标准差为5分。问分数在60与70分之间的人数占全体考生总人数的百分比为()
下列关于Internet的描述中,错误的是()。
最新回复
(
0
)