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American_Bankers_Association

CTFA · Question #41

It is a formal, legal commitment to extend credit up to some maximum amount over a stated period of time.

The correct answer is B. Revolving credit agreement. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

It is a formal, legal commitment to extend credit up to some maximum amount over a stated period of time.

Options

  • ALetter of credit
  • BRevolving credit agreement
  • CLine of credit
  • DTrade credit

How the community answered

(25 responses)
  • A
    8% (2)
  • B
    80% (20)
  • C
    4% (1)
  • D
    8% (2)

Topics

#revolving credit agreement#line of credit#credit commitment#credit facilities

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