Under a Line of Credit, in a Revolving Credit Agreement

question 59

Multiple Choice

Under a line of credit, in a revolving credit agreement:

• A)a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement.
• B)a bank provides funds for no more than 90 days.
• C)the bank interest rate is allowed to float based on agreed-upon criteria.
• D)a bank agrees to make additional funds available as long as the principal and interest are paid.

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