In a revolving credit agreement, the firm pays interest on
A. the full line of credit.
B. the unused portion of the line of credit.
C. only the amount actually borrowed.
D. the amount actually borrowed and commitment fees on any unused portion of the loan.
Answer:D
In a revolving credit agreement, the firm pays interest on
A. the full line of credit. B. the unused portion of the line of credit. C. only the amount actually borrowed. D. the amount actually borrowed and commitment fees on any unused portion of the loan.