Which of the following provides financing that can vary in size over the life of a loan?
A)Revolving credit agreement
B)Commercial paper
C)Single payment note
D)a and b
E)None of the above

Question

Quizplus · Accepted Answer

A revolving credit agreement allows borrowers to draw and repay funds as needed, up to a set limit, and the size of the financing can vary over the life of the loan. Commercial paper is a form of short-term borrowing, typically used by corporations, and the size of the borrowing is fixed at the time of issuance. A single payment note is a loan that requires the borrower to make a single lump sum payment at a specified date and does not allow for variability in the size of financing. Therefore, the correct answer is A) Revolving credit agreement.

Which of the Following Provides Financing That Can Vary in Size