Compared to a line of credit, a revolving credit agreement generally will be
A. a lower cost, higher risk method of short-term borrowing.
B. a lower cost, lower risk method of short-term borrowing.
C. a higher cost, higher risk method of short-term borrowing.
D. a higher cost, lower risk method of short-term borrowing.
Answer:D
Compared to a line of credit, a revolving credit agreement generally will be
A. a lower cost, higher risk method of short-term borrowing. B. a lower cost, lower risk method of short-term borrowing. C. a higher cost, higher risk method of short-term borrowing. D. a higher cost, lower risk method of short-term borrowing.