A ________ refers to a line of credit that is guaranteed by the bank
A) collateral trust fund
B) revolving credit agreement
C) contract credit agreement
D) commercial credit agreement

Question

Quizplus · Accepted Answer

A revolving credit agreement is a type of line of credit that is guaranteed by the bank. The borrower is given a maximum credit limit and can withdraw and repay funds as needed, with interest only being charged on the amount borrowed. This type of credit is often used by businesses for working capital needs. Collateral trust funds, contract credit agreements, and commercial credit agreements do not necessarily guarantee a line of credit.

A ________ Refers to a Line of Credit That Is