In a line credit arrangement, the firm pays interest on
A. the full line of credit.
B. the unused portion of the line of credit.
C. only the amount actually borrowed.
D. only the amount actually borrowed and commitment fees on any unused portion of the loan.
Answer:C
In a line credit arrangement, the firm pays interest on
A. the full line of credit. B. the unused portion of the line of credit. C. only the amount actually borrowed. D. only the amount actually borrowed and commitment fees on any unused portion of the loan.