With a Line of Credit,the Bank Is Compensated ________

question 37

Multiple Choice

With a line of credit,the bank is compensated ________.

• A)based on the outstanding balance of the loan
• B)based on the principal value of the credit line
• C)exclusively with a fixed annual payment
• D)based on a fixed interest rate tied to the T-bill rate

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Definitions:

Being In The Black

A financial term indicating a company or individual is making a profit or has a positive balance.

Deficit

A shortfall or deficiency, such as in a budget or in the amount of a required substance.

Being In The Red

A financial term indicating that a business or individual is operating at a loss or spending more money than is being earned.

CPT

Stands for Current Procedural Terminology, a set of medical codes used to describe healthcare procedures and services for billing purposes.