Which of the following is an example of closed-end credit?

Question

Quizplus · Accepted Answer

Closed-end credit refers to a type of loan where the borrower receives a specific amount of money that must be repaid over a predetermined period of time with a fixed interest rate. Examples of closed-end credit include mortgage loans, car loans, and personal loans. The other options listed are examples of open-end credit, where the borrower can continually borrow money up to a certain limit (e.g., department store credit card) or overdraft protection.

Which of the Following Is an Example of Closed-End Credit