Which of the following statements regarding a line of credit is true?
A) The purpose for which the money is being borrowed must be stated by the borrower.
B) A line of credit agreement usually fixes the interest rate that will be applied to any extensions of credit.
C) A line of credit agreement is a legal commitment on the part of the bank to provide the stated credit.
D) Such agreements usually cover the borrower’s fiscal year.
Darshita Changed status to publish August 12, 2020