A Personal Line of Credit Is a

question 11

Multiple Choice

A personal line of credit is a

• A)credit arrangement that has no extra costs.
• B)prearranged loan for a specified amount that you can use by writing a special check.
• C)credit arrangement that has no specific repayment plan.
• D)synonym for installment cash credit.
• E)synonym for single lump-sum credit.

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Definitions:

Installment Note

A debt instrument that requires regular payments, or installments, of principal and interest over a set period of time until the full amount, including interest, is paid.

Premium on Bonds Payable

The amount by which a bond's sale price exceeds its face value, reflecting additional value due to market conditions or the bond's terms.

Straight-Line Method

A depreciation method that allocates an equal portion of the initial cost of an asset to each period of its useful life.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value or par value, often resulting from interest rates lower than the bond's coupon rate.