Multiple choice general knowledge

When a credit card offers revolving credit it means that…

  1. credit is repeatedly available up to a specified amount as periodic repayments are made.

  2. the APR changes based on the Prime Rate.

  3. The bank has the right to raise the APR after several late or missed payments.

  4. I don't know!
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A Correct answer
Explanation

Revolving credit means you can borrow repeatedly up to your credit limit as you make payments, with interest charged on the outstanding balance. Unlike installment loans, it's not about APR changes tied to Prime Rate or penalty rates for late payments.

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