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"A Company Can Borrow Money at a Preset Rate from the Bank

Question 27

Multiple Choice

"A company can borrow money at a preset rate from the bank at any time without seeking approval of the loan each time it needs funds" is a description of what type of loan?


A) Discount loan
B) Compensating balance loan
C) Line of credit
D) Straight loan with preset payment schedule

Correct Answer:

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