If a Bank Issues You a Line of Credit,you Can

question 134

Multiple Choice

If a bank issues you a line of credit,you can borrow:

• A)money for less than a year.
• B)up to a specified amount as the need arises.
• C)capital for one to five years.
• D)on a personal account for five years or more.

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Definitions:

Unadjusted Balance

The initial balance of an account before any adjustments for interest, payments, or discrepancies have been made.

Accounts Receivable Assigned

Refers to the process where a company uses its accounts receivable as collateral for a loan, effectively assigning the rights to collect those receivables to the lender.

Risk of Ownership

This refers to the potential for loss or damages an owner can face while holding onto an asset or property.

Finance Company

A business that makes loans to individuals and commercial customers, distinct from banks and other traditional financial institutions.