14
QuizMultiple Choice

Study Guide and Quiz

Question 14 • S25 Introduction to Business A (Theisen)

A company sells a car to a consumer and helps the consumer set up a loan with regular set payments. What type of credit is this?

Answer
A
Revolving credit
B
A line of credit
C
Noninstallment credit
D
Installment credit

Explanation

A car loan is repaid over time through a set schedule of regular payments. Credit repaid in fixed installments is called installment credit, so the correct choice is “Installment credit.”

AI-written and checked against the verified answer.

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