A ______refers to a line of credit that is guaranteed by the bank.
A)collateral trust fund
B)commercial credit agreement
C)revolving credit agreement
D)contract credit agreement

Question

Quizplus · Accepted Answer

A revolving credit agreement is a type of line of credit where the borrower can use and repay the funds repeatedly, up to a set credit limit. This type of credit is typically secured by the bank, giving them the guarantee that they will be repaid even if the borrower defaults. The other options listed do not accurately describe this type of credit arrangement.

A ______Refers to a Line of Credit That Is Guaranteed