The Primary Difference Between a Line of Credit and a Revolving

Multiple Choice

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

A) type of collateral used to secure the loan.
B) length of the time period covered by the loan agreement.
C) fact that the line of credit is a secured loan and the revolving credit arrangement is unsecured.
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 financing agreement while the revolving credit arrangement is a short-term financing agreement.