The maximum amount of credit you are allowed by a creditor is called:
A) revolving credit.
B) line of credit.
C) convenience credit.
D) installment cash credit.
E) single lump-sum credit.

Question

Quizplus · Accepted Answer

The maximum amount of credit a creditor offers you is called a line of credit. This is the total amount of credit available to you, which may or may not be fully utilized. Revolving credit and convenience credit refer to types of credit, while installment cash credit and single lump sum credit refer to payment plans.

The Maximum Amount of Credit You Are Allowed by a Creditor