The Provision in Short-Term Credit Agreements That Require Customers to Be

question 223

Multiple Choice

The provision in short-term credit agreements that require customers to be out of debt for 30 to 45 days each year is referred to as a:

• A)loan payoff requirement.
• B)clean-up requirement.
• C)debt free period requirement.
• D)solvency period requirement.

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Definitions:

Secession

The act of withdrawing from an affiliation, union, or federation, notably as practiced by Southern states leading to the American Civil War when they left the Union to preserve slavery and states' rights.

Compromise

A settlement of differences by mutual concessions or reciprocal modification of demands.

Fort Henry

A historical fortification, which can refer to several locations in different countries, known for its strategic military significance.

Fort Donelson

A historic site in Tennessee, known for being a battleground during the American Civil War where Union forces captured the Confederate fort in 1862.