Single Answer MCQ
Q-00015888
Why is timely repayment important in credit agreements?
1
To obtain future loans easily
2
To avoid paying interest
3
To prevent deterioration of the collateral
4
To increase overall profits
Answer and Solution
Answer
A. To obtain future loans easily
Solution:
Timely repayment is crucial as it fosters trust and can facilitate obtaining future loans, thus option A is correct. The other options do not accurately summarize why repayment matters.
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