The primary difference between a line of credit and a revolving credit arrangeme

Question

The primary difference between a line of credit and a revolving credit arrangement is the:

a. length of the time period covered by the loan agreement

b. type of collateral used to secure the loan

c. fact that the line of credit is a secured loan and the revolving credit arrangement is unsecured (*picked and was wrong answer
*)

d. fact that the line of credit is an unsecured loan and the revolving credit arrangement is secured

e. line of credit is a long-term finanacing agreement while the revolving credit arrangement is a short-term financing agreement

Explanation / Answer

Solution :

e. line of credit is a long-term finanacing agreement while the revolving credit arrangement is a short-term financing agreement

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