Nancy's law practice has undergone several financial changes throughout the years.In its early years,it had cash flow problems due to having to wait for payment from estates that were in probate and she could not be paid until they were ready to close.In those years,she made an agreement with a bank that it would loan her money as needed without delay,except when there were issues with the bank having insufficient funds available to make the loan.These issues were usually resolved in a week or less.In later years,she had the loan guaranteed.The firm is currently in the position that it has placed excess funds with a bank which has issued an agreement with the bank stating it will pay the firm a guaranteed interest rate on the money left on deposit for five years.What is the name of the agreement she made with the bank? Revolving credit agreement
A) Line of credit agreement
B) Revolving credit agreement
C) Passbook savings account
D) Certificate of deposit
Correct Answer:
Verified
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