A revolver is a type of loan that allows the borrower to draw money when needed, up to a specified limit. The borrower can repay the loan in full or in part and then draw additional money from the loan later. It is a flexible form of financing that is often used by businesses for working capital or short-term financing needs.

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What Is a Revolver

Question 18

Multiple Choice

What is a revolver?

A) A revolver is a loan that allows a firm to draw money when it is needed,up to a specified amount,and then to repay the loan in part or in full and then draw additional money from the loan later.
B) A revolver is a loan that is continually renewed and never actually paid off by the borrower.
C) A revolver is a loan made by a government agency that requires continual investment by the borrower in the country where the loan is made.
D) A revolver is a loan fund that is made to an industry group that allows any member of the industry group to draw money when it is needed and then to repay the loan so that others in the industry group can borrow from the loan fund.

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