Question
Which statement about revolving credit is accurate?(1 point)
Responses
It is only available to individuals with excellent credit scores.
It is only available to individuals with excellent credit scores.
It allows you to borrow up to a certain limit and renews as you pay it back.
It allows you to borrow up to a certain limit and renews as you pay it back.
You must pay off the entire balance every month.
You must pay off the entire balance every month.
It has a fixed interest rate that never changes.
Responses
It is only available to individuals with excellent credit scores.
It is only available to individuals with excellent credit scores.
It allows you to borrow up to a certain limit and renews as you pay it back.
It allows you to borrow up to a certain limit and renews as you pay it back.
You must pay off the entire balance every month.
You must pay off the entire balance every month.
It has a fixed interest rate that never changes.
Answers
GPT-4o mini
The accurate statement about revolving credit is:
**It allows you to borrow up to a certain limit and renews as you pay it back.**
Revolving credit allows borrowers to access a credit limit, make purchases, and as they pay back the borrowed amount, they can borrow again up to the limit. This is a defining characteristic of revolving credit, such as credit cards.
**It allows you to borrow up to a certain limit and renews as you pay it back.**
Revolving credit allows borrowers to access a credit limit, make purchases, and as they pay back the borrowed amount, they can borrow again up to the limit. This is a defining characteristic of revolving credit, such as credit cards.