line of credit can be either a formal or an informal agreement between a borrower and a bank regarding the maximum amount of credit the bank will extend to the borrower during some future period, assuming the borrower maintains its financial strength.

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This statement correctly defines what a line of credit is, and it can be either a formal or informal agreement between a borrower and a bank. The maximum amount of credit will be extended assuming the borrower maintains its financial strength.

Line of Credit Can Be Either a Formal or an Informal