Which of the Following Statements Is NOT True?A Line-Of-Credit from a Commercial

question 64

Multiple Choice

Which of the following statements is NOT true?A line-of-credit from a commercial bank:

• A)generally has a maximum stated amount available to the borrower.
• B)generally charges the borrower interest only for the amount actually utilized
• C)once granted generally never needs to be renewed.
• D)is often an alternative to and/or in addition to another form of lending already provided by the bank.

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Definitions:

Subcontractors

Individuals or companies hired by a primary contractor to perform specific tasks or services as part of a larger project.

Materialmen

Suppliers or vendors of materials, especially in the construction industry, who may have legal rights such as liens against the property they supply materials for.

Foreclosure by Action and Sale

A legal process where a creditor seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Surplus

The amount by which revenue exceeds expenses in financial accounting, or in terms of inventory, more than what is needed.