Which of the Following Is True About a Line of Credit

question 131

Multiple Choice

Which of the following is true about a line of credit secured by the equity in the debtor's home?

• A)there is a three-day rescission period
• B)the same levels of disclosure for other types of credit are not required
• C)the monthly payments need not be disclosed
• D)All of the above are true.

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Definitions:

Shareholders Equity

The residual interest in the assets of a company after liabilities are deducted, effectively the net worth attributable to shareholders.

Treasury Stock

Represents shares that were issued but have been bought back by the issuing company, reducing the amount of outstanding stock on the market.

Treasury Stock

Shares that were once part of the outstanding stock but were bought back by the company and are held in the company's treasury.

Owners' Equity

Represents the residual interest in the assets of a company after deducting its liabilities.