Which one of the following would not be considered closed-end credit?
A)Home mortgage loan
B)Installment loan to purchase new furniture
C)Line of credit from your bank
D)Automobile loan
E)Single lump-sum credit loan due in 90 days

Question

Quizplus · Accepted Answer

Closed-end credit involves loans for a specific purpose and amount, with a set repayment schedule. Options A, B, D, and E fit this description. A line of credit (C), however, is open-end credit, allowing borrowers to use funds up to a certain limit and repay, then borrow again.

Which One of the Following Would Not Be Considered Closed-End