Which of the Following Statements Regarding Loan Terminology Is True

Multiple Choice

Which of the following statements regarding loan terminology is true?

A) Loan covenants are the collateral provided by a borrower to a lender as security on a loan.
B) A secured loan means that the borrower has a pre-approved line of credit backing the debt.
C) Lenders can revise loan terms if a borrower violates a loan covenant.
D) All companies are able to establish lines of credit which will allow them to borrow money as needed,up to a prearranged limit.