C.W.Beauregard is an Atlantic salmon farmer.He produces and sells salmon to satisfy the growing demand for fish.He has arranged a business loan with terms that guarantee that he can borrow up to $12,000 whenever he needs it within the next year.He must pay interest only on the unpaid loan balance.Beauregard has arranged which of the following type of credit?

Question

Quizplus · Accepted Answer

The terms of the loan indicate that Beauregard can borrow up to a maximum amount within a specific period and only pay interest on the unpaid balance, which is the definition of a line of credit. A credit-line loan is another term used for a line of credit, so option A is also correct. However, the other options do not fit the terms described, so they are incorrect.

CWBeauregard Is an Atlantic Salmon Farmer