A Commitment Fee Is a Fee Charged on Unused Balance

question 98

True/False

A commitment fee is a fee charged on unused balance of a revolving credit agreement to compensate the bank for guaranteeing that the funds will be available when needed by the borrower.

---

Definitions:

Sociological Imagination

The ability to see the connections between personal experiences and larger social forces, a concept introduced by C. Wright Mills.

Origins

Refers to the beginning or source of something, often used in discussions about the origins of societies, ideas, or species in historical or evolutionary contexts.

Micro

Refers to small-scale or minute aspects of something, often used in scientific and economic contexts.

Macro

Referring to large-scale or overall system levels, often used in opposition to micro, which focuses on smaller, individual elements.