The primary difference between a line of credit and a short- term loan is
A)we borrow the entire amount with the short- term loan,but borrow only what we need with the line of credit.
B)we borrow only what we need for the current month with both the short- term loan and the line of credit.
C)we borrow the entire amount with both the short- term loan and the line of credit.
D)we make payments on the line of credit every month to insure that we will have good credit.

Question

Quizplus · Accepted Answer

The primary difference between a line of credit and a short-term loan is that with a short-term loan, we borrow the entire amount upfront, while with a line of credit, we have access to a certain amount of funds but only borrow what we need at any given time.

The Primary Difference Between a Line of Credit and a Short-