A $200 Million Loan Commitment Has an Up-Front Fee of 20

question 53

Multiple Choice

A $200 million loan commitment has an up-front fee of 20 basis points and a back-end fee of 25 basis points on the unused portion. If 50 percent of the commitment is taken down, the back-end fee is

• A)$250,000.
• B)$4,000,000.
• C)$400,000.
• D)$775,000.
• E)$375,000.

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Definitions:

Personal Control

An individual's belief in their ability to influence events and their outcomes, often associated with psychological well-being.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes, prompting an individual to seek consistency.

Stanley Milgram

A psychologist known for his studies on obedience, demonstrating people's willingness to follow orders from authority figures even to the extent of harming others.

Social Psychologist

A professional who studies how individual thoughts, feelings, and behaviors are influenced by the social environment and the presence of other people.