José wants to have money available for any future purchase he desires. What Is his BEST choice to assure that he has open-ended

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3 years ago

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José wants to have money available for any future purchase he desires. What Is his BEST choice to assure that he has open-ended

credit? ОА a single lump-sum credit OB. an installment cash credit Ос. an installment sales credit OD a bank line of credit

Social Studies

1 answer:

Nutka1998 [239] · Answer 1 · 2022-08-15T15:34:06+03:00

The best choice that would assure and guarantee that José has open-ended credit is: D. a bank line of credit.

A credit can be defined as an amount of money that is being borrowed from a lender by a borrower and it is expected to be paid back with interest at an agreed date.

Generally, there are three (3) main types of credit and these include:

Revolving credit

Installment or closed-end credit

Open-end credit

An open-end credit refers can be defined as a pre-approved line of credit (loan) that is granted to a borrower by a financial institution (bank) and it can be used repeatedly up to a specific preset limit. Thus, an open-end credit is typically used for many purchases over a period of time rather than just a single purchase.

In conclusion, the best choice that would assure and guarantee that José has open-ended credit is a bank line of credit because it grants him a certain limit of credit.