Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Engineering Economics

Authors: Chan S. Park

5th edition

136118488, 978-8120342095, 8120342097, 978-0136118480

Students also viewed these Finance questions