A Committed Line of Credit

A committed line of credit:

A) guarantees that a set amount of funds will be available to a firm for a stated period of time regardless of events that might occur during that time period.
B) is a guarantee that a bank will purchase a firm's accounts receivable at full value.
C) provides greater assurance than a noncommitted credit line that funds will be available when needed by a firm.
D) guarantees that any funds borrowed during a stated period of time will be charged the lowest rate of interest the lending bank offers to any of its customers.
E) is a loan arrangement for a stated period of time which is free of all costs and fees other than the actual interest paid on the funds borrowed.

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