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.

Question

Quizplus · Accepted Answer

The Answer of 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.

Which of the Following Is True of the Lines of Credit