Is the statement "A Single Payment Loan is a short-term loan that fully amortizes over its term" true or false?

The statement "A Single Payment Loan is a short-term loan that fully amortizes over its term" is false. A Single Payment Loan typically requires the borrower to make only a single payment at the end of the loan term, rather than amortizing throughout the duration of the loan. This means that the entire principal amount and any associated interest are due at maturity, rather than being spread out over the term with regular payments that would amortize the loan.

Understanding this distinction is crucial in identifying loan types, as amortizing loans involve regular payments over a specified period, gradually reducing the principal amount, which is not the case with Single Payment Loans.