Which one of the following would not typically be closed-end credit?
A) Home mortgage
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 refers to a loan or credit that has a fixed amount, repayment period, and interest rate. Home mortgages, installment loans for furniture or cars, and single lump-sum credit loans are examples of closed-end credit. A line of credit from a bank is typically considered open-end credit, where the borrower has a revolving credit limit and can draw and repay funds as needed. Therefore, the option C, a line of credit from your bank, would not typically be closed-end credit.

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