Question

1. what is open-end credit?

a credit line that can be reused up to a limit
a loan with fixed payments
credit that requires collateral
a type of investment account

Explanation:

To determine the correct answer, we analyze the definition of open - end credit. Open - end credit is a type of credit where the borrower has a pre - approved credit limit and can reuse the credit (repay and borrow again) up to that limit.

• Option 2: A loan with fixed payments is typically a closed - end credit (like an installment loan), so this is incorrect.
• Option 3: Credit that requires collateral is secured credit, which is not the defining feature of open - end credit, so this is incorrect.
• Option 4: Open - end credit is a form of credit, not an investment account, so this is incorrect.
• Option 1: "A credit line that can be reused up to a limit" matches the definition of open - end credit.

Answer:

A. A credit line that can be reused up to a limit