With a general line of credit, the bank:

A. does not charge a commitment fee.
B. charges a commitment fee on the total amount.
C. charges a commitment fee on the used balance.
D. charges a commitment fee on the unused balance.
E. charges the same total fees as it does with a revolving credit agreement.


Answer: A

Business

You might also like to view...

Group depreciation is an appropriate method for a large company calculating depreciation on office equipment

Indicate whether the statement is true or false

Business

A franchise agreement can be for a fixed term and deny the franchisee the right to renew the franchise agreement even if the franchisee has been successful

Indicate whether the statement is true or false

Business

In general, low times interest earned ratio and fixed-payment coverage ratio are associated with a high degree of financial leverage

Indicate whether the statement is true or false

Business

Which of the following is an ineffective practice with regard to building trust within your department?

A. Limiting the employee's access to information in the department B. Restricting the team leaders in the department from micromanaging their subordinates C. Accepting disagreements and differences of opinion within the department D. Communicating openly with the employees about the changes in the department

Business