ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Credit card accounts, home equity lines of credit (HELOC), and debit cards are all common examples of open-end credit (though some, like the HELOC, have finite payback periods). The issuing bank allows the consumer to utilize borrowed funds in exchange for the promise to repay any debt in a timely manner.

Detailed explanation-2: -Common examples of open-end credit are credit cards and lines of credit. As you repay what you’ve borrowed, you can draw from the credit line again and again. Depending on the product you use, you might be able to access the funds via check, card or electronic transfer.

Detailed explanation-3: -What Is Open-End Credit? Open-end credit is a preapproved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due.

Detailed explanation-4: -Question 6 : Which of the following is considered to be open-end credit? Correct Answer : C: Department store charge cards.

Detailed explanation-5: -An open-ended loan is a loan that does not have a definite end date. Examples of open-ended loans include lines of credit and credit cards. The terms of open-ended loans may be based on an individual’s credit score.