Which of the following is true with respect to revolving charge accounts?
A) A down payment is normally required.
B) Charged purchases may not exceed the credit limit.
C) A fixed amount must be paid monthly, regardless of the outstanding balance.
D) Finance charges increase as the outstanding balance increases.

Question

Quizplus · Accepted Answer

Revolving charge accounts have a credit limit, and charged purchases cannot exceed that limit. A down payment is not always required, and the amount paid monthly is not fixed. Finance charges may increase as the outstanding balance increases, but this is not a defining characteristic of revolving charge accounts.

Which of the Following Is True with Respect to Revolving