4
QuizMultiple Choice

Study Guide and Quiz

Question 4 • S25 Introduction to Business A (Theisen)

Which of the following is an example of revolving credit?

Answer
A
A loan that uses collateral
B
A loan that doesn't use collateral
C
A credit card
D
A single-payment loan

Explanation

Revolving credit lets you borrow, repay, and borrow again up to a set credit limit. A credit card is a common example because paying down the balance makes that credit available again. A single-payment loan is repaid at once and does not revolve.

AI-written and checked against the verified answer.

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