Which of the following is the best definition of a 'tied loan contract'?
A) A credit contract in which the credit provider is the borrower's employer and the loan is tied to the borrower's continued employment.
B) A credit contract whereby the borrower gives the credit provider rights to assets owned by the borrower to secure repayment under a credit contract.
C) A credit contract entered into to pay for goods or services provided by a supplier who referred the borrower to the credit provider.
D) A credit contract in which multiple advances of credit are contemplated and the amount of available credit increases as the debt is reduced.
Correct Answer:
Verified
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