A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a line of credit.

Question

Bhanu Bhardwaj · Accepted Answer

Final Answer : True, Explanation :  A line of credit is indeed a prearranged, short-term loan from a bank that is typically reviewed for renewal on an annual basis, allowing borrowers to draw funds as needed up to a predetermined limit.

A prearranged, short-term bank loan made on a formal or informal basis, and typically reviewed for renewal annually, is called a line of credit.

Definitions

Learning Objectives

Learning Objectives

Related questions