Unlike a line of credit, in a revolving credit agreement:
A) a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement.
B) a bank provides funds for no more than 90 days.
C) the bank interest rate is allowed to float based on agreed-upon criteria.
D) a bank agrees to make additional funds available as long as the principal and interest are paid.

Question

Quizplus · Accepted Answer

In a revolving credit agreement, the bank makes a binding commitment to provide funds up to a specified credit limit at any time during the term of the agreement, unlike a line of credit which may not have such a binding commitment.

Unlike a Line of Credit, in a Revolving Credit Agreement