A ________ is an agreement between a commercial bank and a business that states the maximum amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time, provided sufficient funds are available.
A) revolving credit agreement
B) line of credit
C) commercial paper
D) single payment note

Question

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A line of credit is an agreement between a commercial bank and a business that states the maximum amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time, provided sufficient funds are available. a revolving credit agreement is similar to a line of credit, but allows the borrower to continuously borrow and repay funds up to a certain limit. Commercial paper is a type of short-term debt security issued by companies, and a single payment note is a type of promissory note that requires the borrower to make a single payment at maturity.

A ________ Is an Agreement Between a Commercial Bank and a Business