Handyman Hardware, a small community-based store, offers its consumers the option of using credit. Creditworthy individuals are able to use the "HH Credit Card" for all purchases up to a credit limit of $1,000. Consumers are required to pay at least 20 percent of their outstanding balance at the end of each month. A 2 percent finance charge is assessed on the unpaid balance at the end of each billing cycle. Handyman Hardware is employing _____ in its business.
A) open charge accounts
B) installment accounts
C) revolving charge accounts
D) selective accounts

Question

Quizplus · Accepted Answer

Handyman Hardware is offering a revolving charge account since the consumers can use the credit card for multiple purchases with a credit limit, and they are only required to pay a percentage of the outstanding balance each month. Additionally, the 2 percent finance charge assessed on the unpaid balance is a characteristic of a revolving charge account.

Handyman Hardware, a Small Community-Based Store, Offers Its Consumers the Option