Which of the Following Statements Is FALSE

question 44

Multiple Choice

Which of the following statements is FALSE?

• A)Regardless of the loan structure,the bank may include a compensating balance requirement in the loan agreement that reduces the usable loan proceeds.
• B)Another common type of fee is a loan origination fee,which a bank charges to cover credit checks and legal fees.
• C)Firms frequently use lines of credit to finance seasonal needs.
• D)The commitment fee associated with a committed line of credit is designed to decrease the effective cost of the loan to the firm.

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Definitions:

Physically Demanding Job

Employment that requires a high level of physical effort, endurance, and strength, often involving manual labor.

Productivity

The efficiency at which goods and services are produced, often measured by output per unit of input over a specific period.

Destabilizing Forces

Factors or elements that threaten the stability or balance of systems, organizations, or societal conditions.

Food Desert

Areas with limited access to affordable and nutritious food, particularly impacting low-income neighborhoods and communities.