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:

Held Up

Delayed or stopped by something or someone, causing a pause in progress or movement.

Average Variable Costs

The total variable costs (costs that change with output level) divided by the quantity of output produced.

Average Costs

The total cost of production divided by the number of goods produced, a measure of cost efficiency.

Shutting-Down

A short-term decision by a firm to cease operations while it still has the option to resume in the future, often due to unfavorable market conditions.