23
QuizMultiple Choice

Managing Credit and Debit — Test

Question 23 • Personal Finance

Open-end credit is

Answer
A
an amount of time during which a loan can be repaid without interest.
B
pledged to a company as security for a loan repayment.
C
a loan given for a short period of time that is not dependent on credit history.
D
an agreement with an institution on a certain amount that can be repeatedly borrowed.

Explanation

Open-end credit lets a borrower use credit up to an agreed limit, repay some or all of the balance, and borrow again. For example, a credit card can be used repeatedly as long as the account stays within its limit. This matches “an agreement with an institution on a certain amount that can be repeatedly borrowed.”

AI-written and checked against the verified answer.

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