Which of the Following Is True of the Lines of Credit

question 93

Multiple Choice

Which of the following is true of the lines of credit type of short-term bank loans?

• A)Banks typically charge a fee,on top of interest,for lines of credit agreements.
• B)It specifies the maximum amount the firm can borrow over a period of time,usually a year.
• C)The bank is obliged actually to lend the money,even if there is a shortage of funds.
• D)The borrower compulsorily has to repay the original amount,plus interest,within six months.

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Definitions:

Significant Increase

A noticeable or important growth or rise in numbers, magnitude, or degree.

Biological Approach

View that biological factors cause and should be used to treat abnormality.

Brain Dysfunction

Abnormal functioning of the brain that can result from various factors, including injury, disease, or developmental issues, impacting cognitive, emotional, or physical abilities.

Biochemical Imbalance

A condition resulting from abnormal levels of certain substances in the body's biochemistry, often linked to mental health issues.