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A Revolving Bank Line of Credit

Question 40

Multiple Choice

A revolving bank line of credit:


A) generally requires the borrower to borrow the entire credit line amount at some point in time.
B) generally involves a fee charged to the borrower on the unused portion of the revolver.
C) may only be offered for periods of one year or less.
D) is generally free of charge until money is actually borrowed.
E) allows the borrower to determine the amount of credit to be granted.

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