4
QuizMultiple Choice

How Credit Works

Question 4 • TX-Personal Financial Literacy and Economics

Keyshia uses only some of the credit line on her credit card and pays off the balance every month. What might the lender of her loan do as a result?

Answer
A
shorten her repayment period
B
increase her credit limit
C
close her line of credit
D
take away one of her assets

Explanation

Using only part of her credit limit and paying the balance in full each month shows responsible borrowing. The lender may respond by increasing her credit limit, so the correct choice is “increase her credit limit.” It would not normally shorten a repayment period, close her account, or take an asset because she is managing the credit responsibly.

AI-written and checked against the verified answer.

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