A Line of Credit Can Be Either a Formal or an Informal

question 24

True/False

A line of credit can be either a formal or an informal agreement between a borrower and a bank regarding the maximum amount of credit the bank will extend to the borrower during some future period, assuming the borrower maintains its financial strength.

---

Definitions:

Balanced Affectivity

A psychological state characterized by experiencing a harmonious balance of emotions, neither excessively positive nor negative.

Positive Emotion

Feelings that are enjoyable or bring happiness, such as joy, love, and contentment.

Enthusiasm

A feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

Anxiety

Experiencing stress or concern due to the unpredictability of a situation.