With a General Line of Credit, the Bank

question 40

Multiple Choice

With a general line of credit, the bank:

• A)does not charge a commitment fee.
• B)charges a commitment fee on the total amount.
• C)charges a commitment fee on the used balance.
• D)charges a commitment fee on the unused balance.
• E)charges the same total fees as it does with a revolving credit agreement.

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Definitions:

Representative Sample

A sample that accurately reflects the characteristics of the population from which it is drawn.

Survey

A method of gathering information from a sample of individuals, often used to collect data on opinions, behaviors, or characteristics.

Population

A group of individuals of the same species living and interacting within a given area at a particular time.

Advance Knowledge

Prior information or understanding gained before engaging in a specific task or situation.