Which of the following is NOT an example of a backup line of credit?
A)loan commitments
B)overdraft privileges
C)standby letters of credit
D)mortgages

Question

Quizplus · Accepted Answer

A backup line of credit refers to a financial arrangement in which a borrower can access funds from a lender in case of an emergency or when their primary source of funding falls through. Loan commitments, overdraft privileges, and standby letters of credit are all examples of backup lines of credit. However, mortgages do not fall under this category as they are typically long-term loans used to purchase or refinance a property.

Which of the Following Is NOT an Example of a Backup