Which of the Following Statements Is FALSE

question 103

Multiple Choice

Which of the following statements is FALSE?

• A) Regardless of the loan structure, the bank may include a compensating balance requirement in the loan agreement that reduces the usable loan proceeds.
• B) A common type of fee is a loan origination fee, which a bank charges to cover credit checks and legal fees.
• C) Firms frequently use lines of credit to finance seasonal needs.
• D) The commitment fee associated with a committed line of credit is designed to decreases the effective cost of the loan to the firm.

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Definitions:

Future Illness

The anticipation or prediction of health disorders or diseases that an individual may experience later in life.

Neither Crowded Nor Dense

Describes areas with moderate or low levels of population or object clustering.

Living Conditions

The circumstances affecting the daily life and well-being of people, including their housing, environment, and access to resources.

Montana Rancher

An individual who owns or manages a ranch in Montana, involved in the raising of livestock, such as cattle or sheep.