Please match the terms relating to the basic terminology andconcepts.
Seasonal Dating _____ A. If the borrower cannotrepay the loan, the lender can liquidate certain assets
Collection Policy _____ B. Customers can pay lessthan the full invoice amount if they pay within a certain number ofdays.
Credit Standards _____ C. A borrower is required to hold acertain amount of money in an account at the lender'sinstitution.
Cash Discounts _____ D. Benefits can be used to repay a loan inthe case of the death of an owner or important employee.
Loan Guarantees _____ E. A firm has particularrequirements that must be met before credit is extended tocustomers.
Collateral _____ F. This type ofdiscount is used most often in seasonal businesses.
Key-person Insurance _____ G. A firm has certain procedures todeal with past-due accounts.
Discount interest loan _____ H. This is used bybanks to assure payment of loans to privately held companies.
Compensating balances _____ I. To estimate the annual rate,divide the interest paid by half the amount received.
Add-on interest _____ J. This is a loan in which the borrowerprepays the interest.
