A loan that is approved before the money is actually needed is called a
A) certificate of deposit.
B) check.
C) credit bounce.
D) line of credit.
E) promissory note.

Question

Quizplus · Accepted Answer

A loan that is approved before the money is actually needed is called a line of credit. This allows the borrower to access funds as needed up to a certain limit without having to reapply for a new loan. A certificate of deposit, check, credit bounce, and promissory note are all different financial instruments and not related to this type of loan.

A Loan That Is Approved Before the Money Is Actually