There are two types of short-term bank loans: line of credit and _________ agreements.

Question

Quizplus · Accepted Answer

Revolving credit agreements are a type of short-term bank loan that allows the borrower to borrow up to a specified limit and repay the loan over a period of time. It is a flexible loan option that can be drawn upon and repaid multiple times during the agreed-upon period. Deposit turnover agreements, certificates of deposit, and commercial paper are not types of short-term bank loans.

There Are Two Types of Short-Term Bank Loans: Line of Credit