An Important Difference Between Revolving Credit and a General Line

question 44

Multiple Choice

An important difference between revolving credit and a general line of credit is

• A)that a bank has a legal obligation to honor a general line of credit.
• B)that a bank receives a commitment fee for guaranteeing the funds under a general line of credit.
• C)the commitment fees on a general line of credit are generally higher than the commitment fees on a revolving line of credit.
• D)that a bank has a legal obligation to honor a revolving line of credit.
• E)that there are no differences between a general line of credit and a revolving line of credit.

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Definitions:

Verbal Naming

The cognitive process of attaching words or labels to objects, sensations, or concepts, playing a vital role in language development and communication.

Cerebral Cortex

The outer layer of the cerebrum in the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Spoken Language

Refers to the use of sounds and speech for communication between individuals, which can vary widely across different communities and cultures.

Left Frontal Lobe

The left frontal lobe is a region of the brain located in the front left hemisphere, associated with functions such as reasoning, motor skills, higher-level cognition, and expressive language.