Which One of the Following Best Describes a Line of Credit

question 98

Multiple Choice

Which one of the following best describes a line of credit?

• A)Long-term, prearranged, committed bank loan
• B)Short-term loan secured by accounts receivable
• C)Short-term loan secured by inventory
• D)Long-term, prearranged, noncommitted bank loan
• E)Short-term prearranged bank loan that can be either committed or noncommitted

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Definitions:

Price Ratio

The proportionate relationship between the prices of two goods or services, indicating how many units of one good can be exchanged for one unit of another.

Marginal Utility

The extra pleasure or benefit gained by a person from consuming one more unit of a product or service.

Total Utility

The overall satisfaction or utility that a consumer derives from consuming a certain quantity of goods or services.

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.