Question
Which of the following is not true in regards to the relationship between a line of credit and a revolving credit agreement? A. A revolving
Which of the following is not true in regards to the relationship between a line of credit and a revolving credit agreement?
A. A revolving credit agreement requires a bank to invest in highly liquid investments and a line of credit requires no fee on unused balances of credit.
B. A line of credit requires the borrower to have a specified amount of funds at any given time while a revolving credit agreement must do the same thing.
C. With a line of credit, funds are issued as the bank has them available, while a bank is required to issue funds immediately through a revolving credit agreement.
D. A line of credit guarantees quick access to a set amount of funds while a revolving credit agreement allows for continuous access.
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