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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