A type of bank loan that is more flexible than some other loans but that can save the borrower some interest even though it carries a slightly higher interest rate than other loans is the:
A)bridge loan.
B)line of credit.
C)term loan.
D)bankers' acceptance.

Question

Quizplus · Accepted Answer

A line of credit provides flexibility as the borrower can draw funds as needed, and only pay interest on the funds used. While the interest rate may be slightly higher than a term loan, the overall interest paid may be lower as the borrower is not paying interest on the entire loan amount for the full loan term. A bridge loan is typically a short-term loan used for a specific purpose, such as funding the purchase of a new property before selling an existing property. A term loan is a more traditional loan with a set repayment schedule and fixed interest rate. A bankers' acceptance is a financial instrument used to facilitate trade transactions.

A Type of Bank Loan That Is More Flexible Than