ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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collateral
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revolving
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repossession
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foreclosure
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Detailed explanation-1: -A revolving loan is considered a flexible financing tool due to its repayment and re-borrowing accommodations. It is not considered a term loan because, during an allotted period of time, the facility allows the borrower to repay the loan or take it out again.
Detailed explanation-2: -The most common types of revolving credit are credit cards, personal lines of credit and home equity lines of credit.
Detailed explanation-3: -If you’re wondering what revolving credit is, you may be more familiar with it than you think. Revolving credit is a type of loan that’s automatically renewed as debt is paid. It helps to give cardmembers access to money up to a preset amount, also known as the credit limit.
Detailed explanation-4: -Both lines of credit and revolving lines of credit are loans that are typically secured by either property or another asset.