Which of the Following Statements Is FALSE

question 27

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) Another 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:

Apocrine Gland

A type of gland found in the skin, breast, eyelid, and ear that secretes sweat, fatty compounds, and proteins by exocytosis.

Stratum Basale

The deepest layer of the epidermis, containing cells that continuously divide to form new skin cells.

Chemotherapeutic Drug

Medications used to treat cancer by inhibiting the growth of cancer cells through various mechanisms.