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Author Question: Which of the following statements regarding a line of credit is true? A) A line of credit ... (Read 241 times)

arivle123

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on: Jul 10, 2018
Which of the following statements regarding a line of credit is true?
 
  A) A line of credit agreement is a legal commitment on the part of the bank to provide the stated
  credit.
  B) Such agreements usually cover the borrower's fiscal year.
  C) The purpose for which the money is being borrowed must be stated by the borrower.
  D) A line of credit agreement usually fixes the interest rate that will be applied to any extensions
  of credit.

Question 2

Which of the statements below is FALSE regarding interest rates in the period 1950-1999?
 
  A) Inflation averaged 4.05.
  B) The real rate averaged 1.18.
  C) The default premium averaged 7.05.
  D) The maturity premium averaged 1.28 (for twenty-year maturity differences).


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livaneabi

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Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

Answer: C
Explanation: C) The default premium averaged 0.49 (for AAA over government bonds) over the 50-year period from 1950-1999.


arivle123

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

yeungji

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Reply 3 on: Yesterday
Excellent

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