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A guaranteed version of that arrangement, where the bank commits the funds will be available, is a:
ARetiring credit agreement
BReversing credit agreement
CReturning credit agreement
DRevolving credit agreement
Answer & Solution
Correct answer: D. Revolving credit agreement
1. The plain version is not guaranteed.
2. Here the bank promises the money.
3. It is a revolving credit agreement.
_Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._
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