Question

Bigbux Savings and Loan agreed to extend Appleman's Orchards $250,000 of unsecured short-term funds, contingent upon the bank having the funds available. This arrangement represents a(1) pledge agreement.(2) line of credit.(3) factoring agreement.(4) trade voucher.

Answer 1

Answer:

(2) line of credit.

Explanation:

A line of credit is an agreement that states that a bank will extend a specified amount of unsecured short-term credit to a business, provided that the bank has the funds available.