Lines of credit are guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time.

Name: Lines of credit are guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time.
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Lines of credit are not guaranteed loans; they are arrangements between a lender and a borrower that set a maximum loan balance the borrower can access, but the borrower is not guaranteed to be lent any amount until they actually draw on the line.

Lines of Credit Are Guaranteed Loans That Specify the Maximum