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:

Electronegativity

A measure of an atom's ability to attract electrons towards itself in a chemical bond.

Periodic Table

A tabular arrangement of the chemical elements, organized by their atomic number, electron configuration, and recurring chemical properties.

Noble Gases

A group of inert gases including helium, neon, argon, krypton, xenon, and radon, known for their lack of chemical reactivity.

Electronegativity

A measure of an atom's ability to attract and hold onto electrons within a chemical bond.