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21 February, 02:45

A revolving credit agreement is a formal line of credit. The firm must generally pay a fee on the unused balance of the committed funds to compensate the bank for the commitment to extend those funds. a. True b. False

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  1. 21 February, 02:55
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    a. True

    Explanation:

    A revolving credit agreement is a line of credit, that is, a default limit that a firm can use to borrow money as much as possible until this limit is reached. The firm will have to pay the bank for a commitment to lend or extend such funds. The bank will also put some factors about the firm's ability to pay into consideration before revolving credit can be used.
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