This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements regarding a line of credit is true? A) A line of credit ... (Read 143 times)

arivle123

  • Hero Member
  • *****
  • Posts: 569
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).



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

livaneabi

  • Sr. Member
  • ****
  • Posts: 328
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

  • Member
  • Posts: 569
Reply 2 on: Jul 10, 2018
:D TYSM


jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

For a complete list of videos, visit our video library