A contractual commitment to lend to a firm a certain maximum amount at given interest rate terms is:
A)a loan commitment agreement
B)a credit line
C)a bond
D)None of the listed options are correct.

Question

Quizplus · Accepted Answer

A loan commitment agreement is a legally binding contract between a lender and a borrower where the lender agrees to lend a certain amount of money to the borrower at a specified interest rate over a predetermined period of time. This differs from a credit line or bond, which may have different terms and conditions.

A Contractual Commitment to Lend to a Firm a Certain