A loan that provides a loan limit which can be utilized for multiple purchases over time is:
A) Closed end retail credit.
B) Open end credit.
C) Exemplified by an auto loan.
D) Both b and c.
E) None of the above.

Question

Quizplus · Accepted Answer

An open end credit is a type of loan that provides a loan limit which can be utilized for multiple purchases over time. This is in contrast to a closed end retail credit which is a loan that provides a one-time lump sum amount for a specific purchase, such as an auto loan. Therefore, the correct answer is B.

A Loan That Provides a Loan Limit Which Can Be