10
QuizMultiple Choice

Credit and Interest

Question 10 • FL-2106010-M/J Civics B

Which form of credit imposes a credit limit, is unsecured, is high in interest, and has a bank or financial institution as a lender?

Answer
A
a mortgage
B
a credit card
C
a vehicle loan
D
a paycheck loan

Explanation

A credit card lets a borrower spend up to a set credit limit and is usually unsecured, meaning it does not require collateral. Credit cards often charge high interest, and they are typically issued by banks or other financial institutions. A mortgage and a vehicle loan are secured by property, while a paycheck loan is not the described bank-issued revolving credit.

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