- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 4. Fixed-Income Markets for Corporate Issuers
- Subject 1. Short-Term Funding Alternatives
CFA Practice Question
The least reliable form of bank borrowing is: A. uncommitted lines of credit
B. asset-based loans
C. revolving credit agreements
Correct Answer: A
In general, an uncommitted line is a line of credit offered by a bank to a fund that does not obligate a bank to advance loans. Rather, the bank agrees to make loans available to the fund in the bank's sole discretion.
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