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2. What is a key feature of revolving credit , such as a credi 1. A credit card requires fixed monthly payments ov 2. A credit card allows you to borrow up to a certain 3. A credit card is used for one-time large purchase 4. A credit card has no borrowing limit.

Question

2. What is a key feature of revolving credit , such as a credi 1. A credit card requires fixed monthly payments ov 2. A credit card allows you to borrow up to a certain 3. A credit card is used for one-time large purchase 4. A credit card has no borrowing limit.

2. What is a key feature of revolving credit , such as a credi
1. A credit card requires fixed monthly payments ov
2. A credit card allows you to borrow up to a certain
3. A credit card is used for one-time large purchase
4. A credit card has no borrowing limit.

Solution

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KatalinaElite · Tutor for 8 years

Answer

The correct answer is **2. A credit card allows you to borrow up to a certain limit.**<br /><br />Revolving credit is characterized by a pre-approved credit limit that you can borrow from repeatedly. As you pay back what you've borrowed, that credit becomes available to use again. This contrasts with installment credit (like a car loan) where you receive a fixed amount and make regular payments until it's paid off.<br />
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