Under 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, a bank commits to providing funds up to a specified credit limit at any time during the term, allowing the borrower to use and repay repeatedly.

Under a Line of Credit, in a Revolving Credit Agreement