Which of the following statements is FALSE?
a. Regardless of the loan structure, the bank may include a compensating balance requirement in the loan agreement that reduces the usable loan proceeds.
b. A common type of fee is a loan origination fee, which a bank charges to cover credit checks and legal fees.
c. Firms frequently use lines of credit to finance seasonal needs.
d. The commitment fee associated with a committed line of credit is designed to decrease the effective cost of the loan to the firm.
d. The commitment fee associated with a committed line of credit is designed to decrease the effective cost of the loan to the firm.
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Indicate whether the statement is true or false.
The exclusive online publication of Stephen King's e-book Riding the Bullet
A) was a failure because the cost of the book was too high. B) produced very few sales. C) was an unqualified success and established electronic publishing as a legitimate competitor for traditional publishers. D) was disrupted by hackers who breached security, then distributed free copies of the book.