4
QuizMultiple Choice

Understanding Financing — Quiz

Question 4 • Financial Algebra/Mathematics

Which fee is charged by a lender for processing a new loan application?

Answer
A
annual
B
maintenance
C
transaction
D
origination

Explanation

An origination fee is charged by a lender to process and set up a new loan. Annual and maintenance fees are recurring charges, while a transaction fee applies to a particular transaction. Therefore, the correct choice is origination.

AI-written and checked against the verified answer.

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