Handyman Hardware, a small community-based store, offers its consumers the option of using credit. Creditworthy individuals are able to use the "HH Credit Card" for all purchases up to a credit limit of $1,000. Consumers are required to pay at least 20 percent of their outstanding balance at the end of each month. A two percent finance charge is assessed on the unpaid balance at the end of each billing cycle. Handyman Hardware is employing ____ in its business.
A) open charge accounts
B) installment accounts
C) revolving charge accounts
D) selective accounts

Question

Quizplus · Accepted Answer

The description of the credit offered by Handyman Hardware matches the characteristics of a revolving charge account, where the consumer can make purchases up to a certain credit limit, with the option to pay off a portion or all of the balance each month. The unpaid balance incurs a finance charge, and the credit is available for use again.

Handyman Hardware, a Small Community-Based Store, Offers Its Consumers the Option