Which of the Following Statements About Loan Terminology Is Correct

question 125

Multiple Choice

Which of the following statements about loan terminology is correct?

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

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