9
QuizMultiple Choice

Loans — Quiz

Question 9 • Financial Algebra/Mathematics

Credit cards are an example of which type of loan?

Answer
A
balloon loan
B
installment loan
C
payday loan
D
revolving loan

Explanation

Credit cards are revolving loans because you can borrow up to a credit limit, repay some or all of what you owe, and borrow again. Unlike an installment loan, a credit card does not have a fixed schedule of equal payments that pays off a single loan amount.

AI-written and checked against the verified answer.

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