Multiple Choice
In a revolving credit agreement, the firm pays interest on ________.
A) the full line of credit
B) the unused portion of the line of credit
C) the amount actually borrowed and compensating balance
D) the amount actually borrowed and commitment fees on any unused portion of the loan
Correct Answer:
Verified
Correct Answer:
Verified
Q147: The prime rate of interest fluctuates with
Q148: In pledging accounts receivable, the percentage advanced
Q149: Because the bank guarantees the availability of
Q150: Lenders of secured short-term funds prefer collateral
Q151: For firms that are able to raise
Q153: Spontaneous unsecured financing has a specific interest
Q154: If one borrows $1,000 at 8 percent
Q155: Revolving credit agreements are guaranteed loans that
Q156: A firm has directly placed an issue
Q157: The effective interest rate generally is _.<br>A)