A prearranged credit agreement with a bank typically open for two or more years is called a:
A) letter of credit.
B) cleanup loan.
C) compensating balance.
D) line of credit.
E) revolving credit arrangement.

Question

Quizplus · Accepted Answer

A revolving credit arrangement is a prearranged credit agreement with a bank that allows the borrower to access funds up to a certain limit and is typically open for two or more years.

A Prearranged Credit Agreement with a Bank Typically Open for Two