The following forms of short-term borrowings are available
to a firm:

• Floating lien

• Factoring

• Revolving credit

• Chattel mortgages

• Bankers’ acceptances

• Lines of credit

• Commercial paper

The forms of short-term borrowing that are unsecured credit are

(d) The requirement is to identify the forms of borrowing
that are unsecured. Answer (d) is correct because revolving
credit agreements, bankers’ acceptances, lines of credit, and
commercial paper all represent unsecured obligations. Answer
(a) is incorrect because floating liens and chattel mortgages
are secured. Answer (b) is incorrect because factoring agreements
and chattel mortgages are secured. Answer (c) is incorrect
because floating liens and chattel mortgages are secured.