For which type of loan does a bank extend credit that is to be used fo

QUESTION

For which type of loan does a bank extend credit that is to be used for a specific purpose?

A) line of credit
B) revolving credit agreement
C) transaction loan
D) secured loan
E) unsecured loan

ANSWER

Answer: C
Explanation: C) A transaction loan is credit by a bank for a specific purpose, such as for constructing a new store or stocking up on new inventory for the season.