Which of the Following Statements Regarding a Line of Credit

question 139

Multiple Choice

Which of the following statements regarding a line of credit is true?

• A)The purpose for which the money is being borrowed must be stated by the borrower.
• B)A line of credit agreement usually fixes the interest rate that will be applied to any extensions of credit.
• C)A line of credit agreement is a legal commitment on the part of the bank to provide the stated credit.
• D)Such agreements usually cover the borrower's fiscal year.

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Definitions:

Staff Positions

Roles within an organization that support the line or primary activities, often involved in administrative, advisory, or strategic planning functions.

Authority

The power or right to give orders, make decisions, and enforce obedience within an organizational or societal structure.

Line Positions

Roles within an organization directly involved in the core business operations, responsible for achieving company objectives.

Geographical Groupings

The classification of areas or locations based on geographic characteristics or proximity for analysis or organizational purposes.