UGBA 10 - Module 1 Question and answers 100% correct 2023/2024

UGBA 10 - Module 1 Question and answers 100% correct 2023/2024 Secured Loan (Asset-Backed Loan) - correct answer Loan to finance an asset, backed by the borrower pledging the asset as collateral to the lender Collateral - correct answer Asset pledged for the fulfillment of repaying a loan Loan Principal - correct answer Amount of money that is loaned and must be repaid Interest - correct answer Fee paid to a lender for the use of borrowed funds Annual Percentage Rate (APR) - correct answer One-year rate that is charged for the borrowing, expressed as a percentage of the borrowed principal Working Capital - correct answer Current assets - Current liabilities Unsecured Loan - correct answer Loan for which collateral is not required Compensating Balance - correct answer Portion of loan amount on deposit with the bank, typically required for unsecured loans Business Plan - correct answ