15
QuizMultiple Choice

Unit Test — Unit test

Question 15 • CARE_24_25_TX-Mathematical Models with Applications A

Which of the following types of credits would best describe credit cards?

Answer
A
closed and secured
B
closed and unsecured
C
open and secured
D
open and unsecured

Explanation

Credit cards are open credit because you can borrow repeatedly up to a limit, repay some or all of the balance, and use the available credit again. They are unsecured because they generally do not require collateral, such as a car or home, to back the debt. Therefore, the best description is open and unsecured.

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