Today,Michael purchased a laptop computer from a retail outlet.He has agreed to pay for this purchase in full 30 days from today.This is an example of:
A)open-end credit.
B)a line of credit.
C)single lump-sum credit.
D)installment cash credit.
E)incidental credit.

Question

Quizplus · Accepted Answer

This is an example of single lump-sum credit where the full amount is paid at one time after 30 days. Open-end credit involves a revolving credit line, while a line of credit is a pre-approved credit limit that can be used over a period of time. Installment cash credit involves payments made over a period of time with interest, and incidental credit is a temporary extension of credit offered for a specific purchase.

Today,Michael Purchased a Laptop Computer from a Retail Outlet