Revolving vs. Installment -

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Questions and Answers

Which of the following best describes revolving credit?

  • An agreement that allows an account holder to borrow money without any repayment obligations.
  • An agreement that permits an account holder to borrow money once and repay it in full immediately.
  • An agreement that allows an account holder to borrow money repeatedly up to a set limit while repaying in installments. (correct)
  • An agreement that permits an account holder to borrow money repeatedly without any set limit.

What is the key feature of revolving credit?

  • Borrowing money without any repayment obligations.
  • Borrowing money repeatedly without any set limit.
  • Repaying the borrowed money in full immediately.
  • Borrowing money repeatedly up to a set limit. (correct)

How does revolving credit work?

  • Borrowing money repeatedly up to a set limit and repaying in installments. (correct)
  • Borrowing money once and repaying it in full immediately.
  • Borrowing money repeatedly without any set limit.
  • Borrowing money without any repayment obligations.

Which of the following statements best describes revolving credit?

<p>Revolving credit allows an account holder to borrow money repeatedly up to a set limit and repay it in installments. (B)</p> Signup and view all the answers

What is the main benefit of revolving credit?

<p>Access to funds whenever needed. (A)</p> Signup and view all the answers

Which of the following is an example of revolving credit?

<p>A credit card with a $5,000 limit that can be used for multiple purchases. (A)</p> Signup and view all the answers

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