Of the following four options, which one is designed as a vehicle for long-term credit?
A) Open charge accounts
B) Installment accounts
C) Revolving charge accounts
D) Credit cards

Question

Quizplus · Accepted Answer

Installment accounts are designed for long-term credit as they involve the borrower paying back the loan amount along with interest in fixed monthly installments over a period of time. This is typically used for larger purchases such as a car or a home. Open charge accounts, revolving charge accounts, and credit cards involve revolving credit where the borrower pays back the balance each month or carries a balance with interest but do not have a fixed term for repayment.

Of the Following Four Options, Which One Is Designed as a Vehicle