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.

---

Definitions:

Tropical Desert

A desert located in a tropical climate, characterized by high temperatures, minimal rainfall, and sparse vegetation.

Temperate Desert

A biome characterized by low precipitation, moderate temperatures compared to other deserts, and specific vegetation adapted to these conditions.

Rain Shadow

A dry area on the leeward side of a mountainous area, where less rain falls due to the obstruction of precipitation by the mountains.

Ecological Communities

Groups of interacting species that live in the same area and are interconnected through various ecological processes.