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?

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