An example of open-end credit is:
A)the use of a bank credit card to make a purchase.
B)a mortgage loan from a savings and loan institution.
C)an automobile loan from a credit union.
D)an installment loan from a furniture store.
E)an installment loan for purchasing a major appliance.

Question

Quizplus · Accepted Answer

Open-end credit, also known as revolving credit, allows borrowers to use credit up to a certain limit, make purchases, and pay off the debt repeatedly. A bank credit card is a prime example of open-end credit, as it lets users make purchases up to a pre-approved limit and pay the balance over time, with the option to borrow again once the balance is paid down.

An Example of Open-End Credit Is