Which of the following is an unsecured short-term bank loan made for a specific purpose?
A) mortgage bond
B) line of credit
C) revolving credit agreement
D) transaction loan

Question

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A transaction loan is an unsecured short-term bank loan made for a specific purpose, such as inventory purchases or equipment financing. A mortgage bond is a long-term secured loan for real estate, a line of credit is a revolving form of credit, and a revolving credit agreement is a type of credit facility that allows borrowers to draw down, repay, and re-borrow funds as needed.

Which of the Following Is an Unsecured Short-Term Bank Loan