Question

What is a closed line of credit? a. a line of credit with a set maximum credit limit. b. a line of credit with no interest rate. c. a line of credit with a fixed total amount. d. a line of credit with a legally mandated repayment schedule. please select the best answer from the choices provided a b c d

Answer 1

Answer:

c

Step-by-step explanation:

a line of credit with a fixed total amount.

Answer 2

The closed line of the credit is the line of credit with the fixed total amount. Option c is the correct option.

What is a line of credit?

On the bases of the requirement, a person or firm takes the open or closed line of credit.

• Open Line of Credit-This is a type of short period of loan in which many credit and deposit can be make, for example credit cards.
• Closed Line of Credit-This type of credit has to be repaid with total amount. The period of such credit is longer than the open line of credit. The deposits is make single time with fixed total amount.

Thus, the closed line of the credit is the line of credit with the fixed total amount. Option c is the correct option.

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