The fees that represent bank costs in considering loan applications and document preparation are called:
A) commitment fees.
B) establishment fees.
C) line fees.
D) service fees.

Question

Quizplus · Accepted Answer

Establishment fees represent the bank's costs for considering loan applications and document preparation. Commitment fees are charged by the bank for reserving credit funds for a customer. Line fees are charged to maintain a credit line, while service fees are charged for specific services provided by the bank.

The Fees That Represent Bank Costs in Considering Loan Applications