10
QuizMultiple Choice

3.7 How Credit Works

Question 10 • TX-Personal Financial Literacy and Economics

Georgia needs to periodically use her credit card for extra money to pay for medical and unexpected expenses. She usually pays it off every six months.Which type of repayment schedule is described in this scenario?

Answer
A
fixed
B
revolving
C
installment
D
collateralized

Explanation

A credit card provides revolving credit: Georgia can borrow money as needed, repay the balance, and use the credit again. Paying it off every six months does not make it an installment loan, which is repaid through a set series of scheduled payments.

AI-written and checked against the verified answer.

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