The Primary Difference Between a Line of Credit and a Short-

question 54

Multiple Choice

The primary difference between a line of credit and a short- term loan is

• A)we borrow the entire amount with the short- term loan,but borrow only what we need with the line of credit.
• B)we borrow only what we need for the current month with both the short- term loan and the line of credit.
• C)we borrow the entire amount with both the short- term loan and the line of credit.
• D)we make payments on the line of credit every month to insure that we will have good credit.

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Definitions:

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, thus avoiding a potentially distressful truth.

Anger

A strong feeling of annoyance, displeasure, or hostility triggered by perceived wrongs.

Shock

A sudden and often negative emotional or physical reaction to an unexpected event.

Endings Phase

The final stage of a process or relationship, where closure or conclusion occurs.