After much searching, Mort located an old banking friend of his father's. The banker offered Mort up to $25,000 in unsecured funds, which Mort's firm could borrow any time within a year, as long as the bank has the money available. Mort was offered a(n)
A) revolving credit agreement.
B) asset guarantee pledge.
C) pledging agreement.
D) line of credit.

Question

Quizplus · Accepted Answer

A line of credit is an agreement with a bank to provide a business a maximum amount of money in an unsecured, short-term loan. However, this agreement is subject to the bank having the necessary funds available.

After Much Searching, Mort Located an Old Banking Friend of His