Banks may deny creditworthy borrowers loan requests if A. they are individuals B. they are non-corporate entities C. they are on late on paying taxes D. the loan is too risky Prepayment of loans may be initiated by A. borrowers and lenders B. bank regulators C. bank auditors D. the central bank Covenants in loan agreements are used to A. secure collateral B. make representations in agreements C. control the borrower's behaviour D. as guaranties Accrual basis in loan pricing refers to A. the number of days used to calculate interest B. the method of accounting used to record the loans C. the effective yield D. none of the above The effective yield on the loan is the least when the loan is priced at A. nominal rates/365 days B. 360-day year/30-day months C. 360-day year/actual number of days D. 365-days/actual number of days The prime rate is A. the base rate on consumer loans B. the base rate on international loans C. the base rate conventional loans D. none of the above