Question 2 • 2027 Ignite Financial Literacy-Personal Finance - EL3403
A home loan is closed-end credit because the borrower receives a set amount and repays it over a defined period, usually through scheduled payments. A credit card is open-end credit because the borrower can keep borrowing up to a limit as they repay. Payday and title loans are generally short-term loans, but the standard example of closed-end credit here is a home loan.
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