Open-end credit is

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

B. pledged to a company as security for a loan repayment.

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

D. an agreement with an institution on a certain amount that can be repeatedly borrowed.

Question

Business

Russell

1 April, 05:39

Open-end credit is

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

B. pledged to a company as security for a loan repayment.

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

D. an agreement with an institution on a certain amount that can be repeatedly borrowed.

+5

Answers (1)

Know the Answer?

Sanai Warren · Answer 1

The correct answer would be D, An agreement with an institution on a certain amount that can be repeatedly borrowed.

Explanation:

There are two type of credit loans. One is open ended and the other is close ended. Closed end credit is the credit which the borrower has to pay back before a specific date. Whereas, open end credit is the form of credit that can be borrowed repeatedly for as long as the borrower makes consistent payments to the bank or the financial institution according to the terms they set at the time of lending the loan. So in this question, option D is the appropriate answer.