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In a General Line of Credit

Question 36

Multiple Choice

In a general line of credit:


A) the bank does not charge a commitment fee.
B) the bank charges a commitment fee on the total amount.
C) the bank charges a commitment fee on the used balance.
D) the bank charges a commitment fee on the unused balance.
E) the commitment fee charged is the same as that in a revolving credit agreement.

Correct Answer:

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