Which option is designed for long-term credit?
A)Credit cards
B)Installment accounts
C)Open charge accounts
D)Revolving charge accounts

Question

Quizplus · Accepted Answer

Installment accounts are designed for long-term credit because they involve a fixed amount of credit extended over a specified period with regular payments usually made on a monthly basis. This differs from revolving charge accounts and open charge accounts which allow for varying credit amounts and payment terms. Credit cards can also be used for long-term credit, but typically carry higher interest rates than installment accounts.

Which Option Is Designed for Long-Term Credit