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    Financial Management Theory and Practice Study Set 1
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    Exam 17: Working Capital Management and Short-Term Financing
  5. Question
    A Revolving Credit Agreement Is a Formal Line of Credit
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A Revolving Credit Agreement Is a Formal Line of Credit

Question 88

Question 88

True/False

A revolving credit agreement is a formal line of credit often used by large firms.The firm generally must pay a fee on the unused balance of the committed funds to compensate the bank for the commitment to extend those funds.

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