A _____ is a guaranteed line of credit in which 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.
A)term loan agreement
B)revolving credit agreement
C)trade credit
D)commercial paper

Question

Quizplus · Accepted Answer

A revolving credit agreement is a type of credit facility that provides businesses with access to funds up to a specified limit on an as-needed basis, with the ability to draw and repay funds as necessary. This differs from a term loan agreement, which provides a lump sum of money that is repaid over a set period of time, and trade credit or commercial paper, which are forms of short-term financing typically used to support operational expenses.

A _____ Is a Guaranteed Line of Credit in Which