A line of credit means:
A)the company has access to unlimited funds.
B)a line of credit is the same as long-term loan.
C)a line of credit remains active forever.
D)None of the above

Question

Quizplus · Accepted Answer

A line of credit is a financial agreement between a borrower and a lender that allows the borrower to withdraw funds up to a certain limit, usually for a specified period. It is not the same as an unlimited supply of funds, nor is it a long-term loan. A line of credit may have an expiration date and is subject to approval and renewal.

A Line of Credit Means