13
QuizMultiple Choice

The Cost of Credit

Question 13 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

Open-end credit is

Answer
a
a loan given for a short period of time that is not dependent on credit history.
p
pledged to a company as security for a loan repayment.
a
an amount of time during which a loan can be repaid without interest.
a
an agreement with an institution on a certain amount that can be repeatedly borrowed.

Explanation

Open-end credit lets a borrower use credit repeatedly up to an agreed limit, repay some or all of what is borrowed, and borrow again. This matches choice D: an agreement with an institution on a certain amount that can be repeatedly borrowed. It is not a short-term loan or a period without interest.

AI-written and checked against the verified answer.

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