AFP
CTP · Question #47
(Topic 1) An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:
The correct answer is A. sinking fund. See the full explanation below for the reasoning.
Question
- (Topic 1)
An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:
Options
- Asinking fund
- Bballoon payment
- Cmortgage
- Dzero-coupon bond
How the community answered
(48 responses)- A75% (36)
- B4% (2)
- C13% (6)
- D8% (4)
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