Which of the Following Statements Regarding Lines of Credit Is

question 15

Multiple Choice

Which of the following statements regarding lines of credit is FALSE?

• A)The line of credit agreement may also stipulate that at some point in time the outstanding balance must be zero.This policy ensures that the firm does not use the short-term financing to finance its long-term obligations.
• B)A revolving line of credit is an uncommitted line of credit that involves an informal agreement from the bank for a longer period of time,typically two to three years.
• C)The line of credit may be uncommitted,meaning it is an informal agreement that does not legally bind the bank to provide the funds.
• D)A revolving line of credit with no fixed maturity is called evergreen credit.

---

Definitions:

Civil Liberties

Fundamental rights and freedoms protected by law from governmental interference or deprivation.

Socialist Party

Political party demanding public ownership of major economic enterprises in the United States as well as reforms like recognition of labor unions and woman suffrage; reached peak of influence in 1912 when presidential candidate Eugene V. Debs received over 900,000 votes.

U.S. Soldiers

Members of the United States Armed Forces, particularly the Army, who serve and protect the country through military service.

World War I

A major international conflict from 1914 to 1918, involving many of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Central Powers.