In general, a line of credit has a ______ maturity while a term loan has a ______ maturity.
A)fixed; floating
B)floating; fixed
C)fixed; fixed
D)floating; floating

Question

Quizplus · Accepted Answer

A line of credit usually has a floating maturity, meaning that it can be used and repaid repeatedly during a certain period without a set repayment schedule. On the other hand, a term loan has a fixed maturity, meaning that it has a set repayment schedule over a certain period and cannot be accessed again once it has been fully repaid.

In General, a Line of Credit Has a ______ Maturity