is an agreement established by a bank and a borrower that establishes the maximum amount of funds that could be borrowed and the bank may loan the funds at its own discretion.
Answer(s): A
An agreement established by the bank and the borrower that legally requires the bank to loan money to the borrower at any time requested up to the pre-negotiated limit is called:
Answer(s): B
A revolving line of credit differs from a normal line of credit in that the revolving line of credit legally requires a bank to fulfill the borrower's credit request up to the pre- negotiated limit.
In addition to the interest rate on a line of credit, financial institutions ale also compensated through either:
Answer(s): C
A percentage of the unused portion of a credit line that is charged to the potential borrower is called:
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