________ ensure that money lent under a line of credit agreement is actually being used to finance seasonal needs.
A) Operating-change restrictions
B) Annual cleanups
C) Compensating balances
D) Commitment fees

Question

Quizplus · Accepted Answer

Annual cleanups require the borrower to pay off the line of credit, typically for a period of 30 to 60 days, ensuring the funds are used for short-term needs rather than long-term financing, aligning with the purpose of addressing seasonal requirements.

________ Ensure That Money Lent Under a Line of Credit