Final answer:
The maximum loan term for an initial promissory note to purchase a new combine is 7 years, which is different from a typical 15 or 30-year mortgage term, and is designed to match the useful life of the equipment.
Step-by-step explanation:
The maximum promissory note (loan) term for an initial direct operating loan to purchase a new combine is 7 years. Therefore, the correct answer is option b. 7 years. While the terms of a mortgage typically take place over either 15 or 30 years, the terms for a promissory note for operating loans such as for purchasing agricultural equipment like a combine are different. This type of loan is usually shorter in duration since it involves depreciating assets and the goal is to match the loan term with the useful life of the equipment. It is important to differentiate between various types of loans and their terms as they are structured to suit the nature of the underlying asset or purpose of the loan.