Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days.What type of credit did Jake use?
A)Installment sales credit
B)Installment cash credit
C)Single lump-sum credit
D)Revolving credit
E)Incidental credit

Question

Quizplus · Accepted Answer

Jake used a single lump-sum credit, which means he borrowed a specific amount of money and will repay it in full at the end of the loan term, in this case, 90 days. Other forms of credit, such as installment sales credit, involve making regular payments over time until the loan is paid off, while revolving credit allows the borrower to continuously borrow up to a certain limit as long as they make at least the minimum payment each month. Incidental credit is typically associated with small, short-term loans for specific purchases, such as a store credit card.

Jake Skinner Purchases a Big Screen TV on Credit and Will