A typical five-year revolving line of credit is characterized by:
A)a fixed interest rate for the five years.
B)a floating interest rate, renewed periodically during the five-year term.
C)an interest rate that is lower than the prime rate because these lines of credit are only offered to the most creditworthy firms.
D)b and c

Question

Quizplus · Accepted Answer

A typical five-year revolving line of credit usually has a floating interest rate that is adjusted periodically based on market conditions.

A Typical Five-Year Revolving Line of Credit Is Characterized By