A Line of Credit Is Similar to the Agreement Under

question 110

True/False

A line of credit is similar to the agreement under which issuers of bank credit cards, such asMastercard and Visa, extend approved credit to cardholders.

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Definitions:

Negotiable Instruments

Written documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer's name written on it.

Promissory Note

A financial instrument in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Payable on Demand

A term indicating that a financial obligation must be paid by the debtor as soon as the creditor requests payment.

Order Paper

A document listing the business or matters to be considered by a parliament, legislative body, or other formal assembly.