A mid-size firm may have a "__________" line of credit, meaning all or part of it can be converted into an intermediate-term loan.
A) revolving
B) secured
C) guaranteed
D) mezzanine

Question

Quizplus · Accepted Answer

A revolving line of credit allows a company to borrow and repay funds as needed, and the credit limit is reset once the borrowed amount is repaid. In some cases, a portion of that revolving line of credit may be able to be converted into an intermediate-term loan. Therefore, the most appropriate choice is "revolving."

A Mid-Size Firm May Have a "__________" Line of Credit