Question

select the correct answer from each drop - down menu
in which type of credit does the bank allow you to borrow money up to a specific amount?
in
unsecured credit
secured credit
revolving credit
, the bank allows you to borrow money up to a specific amount, which is your
reset next

Explanation:

Step1: Understand revolving credit

Revolving credit is a type of credit where a bank or financial institution sets a maximum credit limit (a specific amount). The borrower can withdraw, use, repay, and withdraw again as long as the balance does not exceed the credit limit.

Step2: Contrast with other types

• Unsecured credit: Refers to credit not backed by collateral. It doesn't directly relate to borrowing up to a specific amount in the sense of a pre - set, reusable limit.
• Secured credit: Credit backed by collateral. Again, the key feature of a pre - set, reusable limit (borrowing up to a specific amount) is more characteristic of revolving credit.

The second blank is "credit limit" as it is the specific amount in revolving credit that the borrower can access.

Answer:

In revolving credit, the bank allows you to borrow money up to a specific amount, which is your credit limit.