alleryA bank tells a firm the most it may borrow unsecured over the coming year. That agreement is a:
ALine of control
BLine of command
CLine of credit
DLine of custom
Answer & Solution
Correct answer: C. Line of credit
1. A maximum amount is fixed.
2. The borrowing is short-term and unsecured.
3. It is a line of credit.
_Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._
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