2. Which type of credit involves a one-time loan that must be repaid by a specific date A) Open-end credit B) Closed-end credit C) Line of credit D) Unsecured credit

Closed-end credit is like a financial one-and-done deal! You borrow a specific amount of money, usually for purposes such as a home mortgage or a car loan, and you agree to pay it back, along with interest, by a certain date. It’s great for those who prefer structure in their borrowing! On the other hand, open-end credit, like your trusty credit card, allows you to borrow repeatedly up to a certain limit. Once you pay off your balance, your credit line refreshes, making it perfect for ongoing purchases. Choose wisely according to your borrowing needs!