Multiple choice

Revolving credit is similar to which of the following?

  1. A debit card

  2. A pre-paid card

  3. A credit card

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Revolving credit is very similar to a credit card. The lending institution grants you a maximum credit limit, which you can use to make purchases at any time and (usually) on any goods. Many small business owners and corporations use revolving credit to finance capital expansion or as a safeguard in the event of cash flow problems. 

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