Which of the following statements does not accurately describe a line of credit?
A)A line of credit is already approved before the money is actually needed.
B)A line of credit is a long-term loan.
C)A line of credit can be obtained at a credit union, trust company, or bank.
D)A line of credit provides an alternative source of funds if an emergency does develop.
E)A line of credit is available immediately when needed.

Question

Quizplus · Accepted Answer

A line of credit is not a long-term loan, but rather a flexible borrowing arrangement that allows for access to funds as needed. Long-term loans have a fixed repayment schedule and a set amount of funds.

Which of the Following Statements Does Not Accurately Describe a Line