An Important Difference Between Revolving Credit and a General Line

Multiple Choice

An important difference between revolving credit and a general line of credit is

A) that a bank has a legal obligation to honor a general line of credit.
B) that a bank receives a commitment fee for guaranteeing the funds under a general line of credit.
C) the commitment fees on a general line of credit are generally higher than the commitment fees on a revolving line of credit.
D) that a bank has a legal obligation to honor a revolving line of credit.
E) that there are no differences between a general line of credit and a revolving line of credit.