If Abercrombie & Fitch Borrows $8 Million from a Bank

question 50

Multiple Choice

If Abercrombie & Fitch borrows $8 million from a bank to finance the construction of a new store, this is an example of

• A)a stock market transaction.
• B)direct finance.
• C)a bond market transaction.
• D)indirect finance.

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Definitions:

Credit Card Holder

An individual or entity that owns and utilizes a credit card for financial transactions.

Limited Liability

A legal status limiting an individual's loss in a business venture to the amount invested, protecting personal assets from the debts and liabilities of the business.

Home Equity Loan

A type of loan where borrowers use the equity of their home as collateral, typically used for major expenses such as home repairs, medical bills, or college education.

Truth-In-Lending Act

A U.S. federal law designed to protect consumers in their dealings with lenders and creditors by requiring clear disclosure of loan terms and costs.