The Cost of Credit

Question 7 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

What is easy-access credit?

Answer

credit that is to be repaid in full by a specific date

a loan given for a short period of time that is not dependent on credit history

the amount of money borrowed excluding accrued interest

an amount of time during which a loan can be repaid without interest

Explanation

Easy-access credit is typically a short-term loan that is available without relying on the borrower’s credit history. Choice B describes this kind of loan. The other choices describe a repayment deadline, a loan principal, and an interest-free repayment period.

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