Question 25 • 2027 Ignite Financial Literacy-Personal Finance - EL3403
Closed-end credit is borrowed as a set amount and repaid on a schedule, with a specific payoff date. Open-end credit, such as a credit card, lets you borrow, repay, and borrow again up to a limit. Both types generally charge interest, and either may also charge fees, such as a late fee when a required payment is missed.
AI-written and checked against the verified answer.