3
QuizMultiple Choice

The Cost of Credit — Quiz

Question 3 • Personal Finance

Which is an example of easy-access credit?

Answer
A
one-week payday loan for $350
B
credit card with a $4,000 limit
C
$3,000 monthly line of credit
D
$200,000 loan for a home

Explanation

A one-week payday loan is an example of easy-access credit because it is typically quick and relatively easy to obtain, though it can carry very high fees and interest. A credit card and line of credit are ongoing credit products, while a home loan usually requires a lengthy application and qualification process.

AI-written and checked against the verified answer.

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