Question

Setsuko wants to start a business of her own. She does not have enough savings, so she approaches her bank to obtain short-term funds for operations. The bank agrees to lend her $10,000 as she has requested. In this scenario, the type of funding obtained by Setsuko can be regarded as a

Answer 1

The type of funding obtained by Setsuko is the line of credit.

The following information should be relevant for the line of credit:

• It is treated as a flexible loan.
• It is an amount of money i.e. defined and can be accessed whenever it is needed and after that, it could be repaid instant or over a period of time.
• It is for a short period of time.

Since in the given situation, it is mentioned that:

• Setsuko obtained the funds for the short term.
• Bank lent her $10,000.

Therefore we can conclude that the type of funding obtained by Setsuko is the line of credit.

Learn more about the line of credit here: brainly.com/question/17937007