Multiple Choice QuestionA short-term loan that is approved before the money is actually needed is a(n):Multiple choice question.unconditional fund.line of credit.emergency fund.personal loan.
Question
Multiple Choice QuestionA short-term loan that is approved before the money is actually needed is a(n):Multiple choice question.unconditional fund.line of credit.emergency fund.personal loan.
Solution
The correct answer is: line of credit.
A line of credit is a type of short-term loan that a bank or other financial institution agrees to lend to a customer up to a certain limit. The customer can borrow from the line of credit at any time, as long as they do not exceed the maximum set in the agreement and meet any other requirements such as making timely minimum payments. It is approved before the money is actually needed, which makes it different from other types of loans.
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