Which of the following is not true regarding revolving open-end credit?
A) Credit cards are an example of it.
B) A specific maximum amount of credit is established.
C) If the balance is not paid off over a period of months, a penalty is incurred.
D) Interest is charged on the remaining balance each month.

Question

Quizplus · Accepted Answer

Revolving open-end credit agreements typically involve the charging of interest on outstanding balances, but penalties for not paying off the balance over a period of months are not a standard feature. Instead, minimum payments are required, and interest accrues on any remaining balance. Penalties might apply for late payments, but not specifically for failing to pay off the entire balance within a certain timeframe.

Which of the Following Is Not True Regarding Revolving Open-End