As a Short-Term Arrangement,banks Sometimes Extend Guaranteed Lines of Credit

question 124

Multiple Choice

As a short-term arrangement,banks sometimes extend guaranteed lines of credit in which the firm pays a commitment fee on unused portions of the funds the bank has committed.Which of the following describes these arrangements?

• A)revolving credit agreements
• B)trade credit
• C)short-term bank loans
• D)commercial paper

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Definitions:

Theory of Moderation

A philosophical principle suggesting that moderation in all things is the key to a good life, avoiding extremes in behavior, beliefs, and actions.

Athenian Gentleman

Historical term referring to a male citizen of ancient Athens who adhered to principles of personal virtue, wisdom, and civic responsibility.

Human Excellence

Refers to the highest quality or state of being outstanding or superior, particularly in moral virtue, talents, or achievements.

Golden Mean Rule

A philosophical concept from Aristotle asserting that the moral virtue is an intermediate between two extremes of excess and deficiency.