Which Is True About Lines of Credit

question 46

Multiple Choice

Which is true about lines of credit?

• A)The company generally must repay the credit line in full monthly.
• B)The borrower can borrow up to an agreed upon limit.
• C)Interest is charged on the full amount of the agreed upon limit.
• D)Lines of credit are particularly useful for steady income businesses that have very little volatility in revenue.

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Definitions:

Pardoned

The act of forgiving or being forgiven for an error or offense.

Oil Embargo

Prohibition on trade in oil declared by the Organization of Petroleum Exporting Countries, dominated by Middle Eastern producers, in October 1973 in response to U.S. and western European support for Israel in the 1973 Yom Kippur War. The rise in gas prices and fuel shortages resulted in a global economic recession and profoundly affected the American economy.

Middle Eastern Arab Countries

Middle Eastern Arab Countries refers to the nations in the Middle East region that have Arabic as a dominant or official language, sharing cultural, historical, and linguistic ties.

U.S. Support For Israel

Refers to the political, military, and economic backing provided by the United States to the state of Israel, a key aspect of both countries' foreign policies.