Which of the following is not an element of installment credit?A.Repayment scheduleB.Fixed paymentC.Fixed loan amountD.Line of creditSUBMITarrow_backPREVIOUS
Question
Which of the following is not an element of installment credit?A.Repayment scheduleB.Fixed paymentC.Fixed loan amountD.Line of creditSUBMITarrow_backPREVIOUS
Solution
D. Line of credit
This is not an element of installment credit. Installment credit involves a fixed loan amount, a repayment schedule, and fixed payments. A line of credit, on the other hand, is a type of credit that does not have a fixed loan amount or a fixed repayment schedule. Instead, the borrower can draw from the line of credit as needed, up to a certain limit, and repayment is based on the amount actually borrowed.
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