Solved

Tangshan Mining Borrowed $10,000 for One Year Under a Line

Question 104

True/False

Tangshan Mining borrowed $10,000 for one year under a line of credit with a stated interest rate of 8 percent and a 10 percent compensating balance. Thus, the firm keeps a balance of about $800 in its checking account.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q99: One of the most common designations for

Q100: Compared to a line of credit, a

Q101: Operating-change restrictions gives the bank a right

Q102: A terminal warehouse is _.<br>A) a warehouse

Q103: Global Logistics purchased a new machine on

Q105: Appropriate collateral for a loan secured under

Q106: One advantage of factoring accounts receivable is

Q107: The _ is the lowest rate of

Q108: Tangshan Mining issued $10,000 of commercial paper

Q109: Commercial paper is a form of financing