12
QuizMultiple Choice

Topic Test

Question 12 • FowU - Financial Math - B

What is an open line of credit?

Answer
A
A line of credit which has no current balance.
B
A line of credit with a variable interest rate.
C
A line of credit against which additional debt may be drawn.
D
A line of credit which has no credit history requirements.

Explanation

An open line of credit lets the borrower draw additional money up to the credit limit, often as needed. It does not simply mean the account has no balance; that describes choice A, not what makes the credit line open.

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