Provisions of Loans and Lines of Credit Quiz
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Provisions of Loans and Lines of Credit Quiz

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Questions and Answers

Which of the following is true about loans and lines of credit?

  • They are ways of earning money from a bank
  • They are ways of investing money in a bank
  • They are ways of borrowing money from a bank (correct)
  • They are ways of saving money in a bank
  • What should borrowers do before using debt instruments?

  • Ignore the commitments and provisions
  • Ask a friend for advice
  • Sign the documents without reviewing them
  • Carefully read, understand, and abide by the commitments (correct)
  • Who should borrowers consult if they have concerns about the loan documents?

  • A professional familiar with loan documents (correct)
  • Their bank or financial institution
  • No one, they should handle it themselves
  • Their friends or family members
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