29
QuizMultiple Choice

The Cost of Credit

Question 29 • Personal Finance - EL3403

Open-end credit is

Answer
A
a loan given for a short period of time that is not dependent on credit history.
B
pledged to a company as security for a loan repayment.
C
an amount of time during which a loan can be repaid without interest.
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 it, and borrow again. 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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