Under the terms of _____, a firm will pay interest on any funds it borrows, and a commitment fee on any funds it does not borrow.
A) commercial paper
B) a revolving credit agreement
C) a treasury bill
D) an angel investor agreement

Question

Quizplus · Accepted Answer

A revolving credit agreement requires the firm to pay interest on borrowed funds and a commitment fee on the unused portion of the credit line.

Under the Terms of _____, a Firm Will Pay Interest