One example of closed-end credit is:
A)a credit card issued by a department store.
B)a credit card issued by VISA or MasterCard.
C)the use of overdraft protection at a bank.
D)the use of a cashier's check to pay for a purchase.
E)a mortgage loan.

Question

Quizplus · Accepted Answer

A mortgage loan is an example of closed-end credit because it involves a one-time borrowing of a specific amount of money, with a fixed repayment term and interest rate. This type of credit is different from an open-end credit, such as a credit card, where the consumer can borrow repeatedly up to a certain credit limit. The other choices listed involve open-end credit or overdraft protection, which allow for ongoing borrowing and do not have a fixed repayment term.

One Example of Closed-End Credit Is