A Credit Line on Which a Borrower Can Both Draw

question 29

Multiple Choice

A credit line on which a borrower can both draw and repay many times over the life of the loan contract is called a:

• A)reviving loan
• B)revolving loan
• C)refilling loan
• D)A credit line does not exist.

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Definitions:

Constant-Cost Industry

An industry where input prices and production costs remain stable as output increases.

Horizontal Line

A straight line that runs left to right across the plane and has a slope of zero, indicating no change.

Elon Musk

A technology entrepreneur and business magnate known for his role in founding and leading Tesla, SpaceX, and other innovative companies.