首页
登录
职称英语
Security is required on loans for several reasons. One of the most common is
Security is required on loans for several reasons. One of the most common is
游客
2025-06-19
16
管理
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 a-greement 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. [br] 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://tihaiku.com/zcyy/4125215.html
相关试题推荐
Therearetwomaintypesofstocks:commonstockandpreferredstock.Commo
Whenthestockmarketturnsdown,holdersofcommonstockstraditionallybeg
Whenthestockmarketturnsdown,holdersofcommonstockstraditionallybeg
Whenthestockmarketturnsdown,holdersofcommonstockstraditionallybeg
Whenthestockmarketturnsdown,holdersofcommonstockstraditionallybeg
Whenthestockmarketturnsdown,holdersofcommonstockstraditionallybeg
[originaltext]It’snosecretthatthroughouthistorycommonstockhasoutp
[originaltext]It’snosecretthatthroughouthistorycommonstockhasoutp
[originaltext]It’snosecretthatthroughouthistorycommonstockhasoutp
[originaltext]M:Thepapermoneyrequiredlittleefforttocarry.Ifyouneedl
随机试题
•Readthetextbelowaboutnewpremises.•Inmostofthelines34—45,thereis
Americanshadalwaysbeenpreoccupiedwithreformingtheirsociety,with"mak
[originaltext]I’mateacher,whatdoyoudo?[/originaltext][audioFiles]2013w30
Goingoncomputermaybethetoughestjobaremodelingcontractoreverdoes.
Trytoimaginewhatitisliketolivewithoutelectricity.Itisboring,【C1
某种股票为固定成长股票,股利年增长率6%,预计第一年的股利为8元/股,无风险收益
对于病人管理的基本内容正确的是A.安慰和解释 B.告诫或建议 C.开处方、转
红花药材显微组织中分布的分泌组织是A.树脂道B.管道状分泌细胞C.油室D.分泌腔
按照承担的客流性质划分,综合客运枢纽可以分为()。A:换乘型枢纽 B:方式换乘
某项目拟选厂址位于县城东南8km的山坡上,该区域主导风向为SE,确定的大气评价范
最新回复
(
0
)