Mauricio owns a catering business, and he has put all his savings into running this business. During the busy holiday season, he realizes that he needs short-term help financing the business' operations, so he goes to the bank to request $25,000. The bank agrees to lend Mauricio this amount of money. What type of bank loans does this scenario best describe?

Question

Quizplus · Accepted Answer

In this scenario, the bank is giving Mauricio a line of credit, which is an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request.

Mauricio Owns a Catering Business, and He Has Put All