What is an agreement between a bank and a person or business that specifies the maximum amount of short-term borrowing the bank will make available to that person or business?

Question

Quizplus · Accepted Answer

A line of credit is an agreement between a bank and a person or business that specifies the maximum amount of short-term borrowing that the bank will make available to that person or business. It functions like a credit card, allowing the borrower to draw funds as needed, up to the maximum limit agreed upon.

What Is an Agreement Between a Bank and a Person