The Primary Difference Between a Line of Credit and a Revolving

question 1

Multiple Choice

The primary difference between a line of credit and a revolving credit arrangement is the

• A)length of the time period covered by the loan agreement.
• B)type of collateral used to secure the loan.
• C)fact that the line of credit is a secured loan and the revolving credit arrangement is unsecured.
• D)fact that the line of credit is an unsecured loan and the revolving credit arrangement is secured.
• E)fact that the revolving credit arrangement requires a cleanup period but the line of credit does not.

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