A line of credit is an agreement between a bank and a customer under which the bank guarantees the customer a fixed dollar amount of loan.

Name: A line of credit is an agreement between a bank and a customer under which the bank guarantees the customer a fixed dollar amount of loan.
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A line of credit is an agreement that allows a customer to borrow up to a certain limit, but it does not guarantee a fixed dollar amount; the customer can borrow as needed up to the limit.

A Line of Credit Is an Agreement Between a Bank