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Is a loan that does not require the principal amount to be paid off within a specified period of time: a. Committed line of credit

Is a loan that does not require the principal amount to be paid off within a specified period of time:

a. Committed line of credit

b. Uncommitted line of credit

c. Evergreen line of credit

d. Revolving line of credit

The amount of cash a firm holds to counter the uncertainty surrounding its future cash needs is known as:

a. Compensating Balance

b. Transaction Balance

c. Precautionary Balance

Which are correct and why?

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