Which of the following statements is NOT true?A line-of-credit from a commercial bank:
A)generally has a maximum stated amount available to the borrower.
B)generally charges the borrower interest only for the amount actually utilized
C)once granted generally never needs to be renewed.
D)is often an alternative to and/or in addition to another form of lending already provided by the bank.

Question

Quizplus · Accepted Answer

A line of credit from a commercial bank generally needs to be renewed periodically, typically on an annual basis. This ensures that the bank can reassess the borrower's creditworthiness and risk level before extending further credit. Therefore, statement C is not true.

Which of the Following Statements Is NOT True?A Line-Of-Credit from a Commercial