Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is a Credit Line?
What is a Credit Line?
- A variety of transaction codes
- A type of credit facility without an end date
- A predefined borrowing limit (correct)
- A predetermined repayment schedule
How are funds accessed in a Credit Line?
How are funds accessed in a Credit Line?
- Only in lump sum amounts
- Through periodic loan transactions (correct)
- By selling securities
- Through direct bank transfers
What distinguishes a Revolving Credit Line from a Non-Revolving Credit Line?
What distinguishes a Revolving Credit Line from a Non-Revolving Credit Line?
- The frequency of periodic fees
- The authorization resetting with loan repayments (correct)
- The ability to withdraw funds only once
- The existence of predefined borrowing limits
What is exchanged when subscribing to a credit line?
What is exchanged when subscribing to a credit line?
Signup and view all the answers
How is the credit line schedule adjusted based on drawdowns?
How is the credit line schedule adjusted based on drawdowns?
Signup and view all the answers
Which of the following generates cash flows when subscribing to a credit line?
Which of the following generates cash flows when subscribing to a credit line?
Signup and view all the answers
