1. Credit concepts Aa Aa Match the terms relating to the basic terminology and concepts of providing and obtaining credit on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Seasonal dating Collection policy Credit standards Cash discounts A. Banks often require this to offset loss if an owner or manager dies. B. This is a loan in which the borrower prepays the interest. C. Often, banks will require the owners of a small business to sign personally for the debt of the company. D. Assets are pledged to secure a loan. E. A borrower is required to hold a certain amount of money in an account at the lender's Institution. F. To estimate the annual rate, divide the interest paid by half the amount recelved. Loan guarantees Collateral Key-person insurance G. Firms evaluate the likelihood of a customer being unable to pay on their account. H. This type of discount is used most often in seasonal businesses. Discount interest loan I. An example of this credit policy decision is "2/10, net 30." Compensating balances Add-on interest J. A firm has certain procedures to deal with past-due accounts