The Primary Difference Between a Line of Credit and a Revolving

question 45

Multiple Choice

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

• A)type of collateral used to secure the loan.
• B)length of the credit period.
• 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)classification as either a committed or a noncommitted loan.