Which term refers to the amount of money a bank or other business is willing to extend to a borrower?

• A. Credit Card Limit
• B. Credit Score
• C. Credit Line
• D. Loan Amount

Answer: (C)

A line of credit represents the maximum amount a lender is willing to extend to a borrower. It defines the available borrowing capacity under an arrangement that can be drawn on and repaid repeatedly, up to the limit. This differs from a loan amount, which is a single lump sum borrowed and repaid over time. A credit card limit is a specific type of credit line tied to a card, but the broader term for the maximum borrowing capacity is a line of credit. A credit score is a numerical measure of creditworthiness and does not specify how much money can be borrowed.