Asked by Trang Nguyen on May 16, 2024
Verified
All short-term bank loans are secured,meaning that the borrower pledges specific assets as collateral.
Short-term Bank Loans
Loans offered by banks to be repaid within a short timeframe, typically less than a year, to meet immediate financial needs.
Secured
Pertaining to assets or loans that are protected by collateral to ensure repayment or mitigate risk.
Collateral
Assets or property pledged by a borrower to secure a loan or other credit, and subject to seizure on default.
- Comprehend the attributes and consequences of diverse corporate finance sources, such as trade credit and borrowing.
Verified Answer
TQ
taylor quickMay 17, 2024
Final Answer :
False
Explanation :
Short-term bank loans can be either secured or unsecured. Secured loans require collateral, while unsecured loans do not.
Learning Objectives
- Comprehend the attributes and consequences of diverse corporate finance sources, such as trade credit and borrowing.
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