Which of the Following Statements Regarding Loan Terminology Is True

question 40

Multiple Choice

Which of the following statements regarding loan terminology is true?

• A) Loan covenants are the collateral provided by a borrower to a lender as security on a loan.
• B) secured loan means that the borrower has a pre-approved line of credit backing the debt.
• C) loan covenant allows the lender to revise loan terms if a borrower's financial condition deteriorates significantly.
• D) All companies are able to establish lines of credit which will allow them to borrow money as needed, up to a

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Definitions:

Letters

Characters that constitute the written form of a language, used to represent sounds or words.

Chunk

A unit of information or memory, often used in cognitive psychology to describe how pieces of information are grouped together for easier processing and recall.

Engagement

The degree of attention, curiosity, interest, optimism, and passion that people show when they are learning or being taught, which extends to the level of motivation they have to learn and progress in their education.

Exposure

The act of experiencing or being subjected to something, which can refer to environmental conditions, substances, or even ideas and techniques in therapy.