Revolving credit means you can borrow money up to a certain amount. You can keep borrowing and paying back as long as you don't go over the amount. Which of the following is an example of revolving credit?
A credit card (Choice B) personal loan B personal loan (Choice C) mortgage C mortgage (Choice D) car loan D car loan
A credit card is an example of revolving credit.
The example of revolving credit is a credit card (Choice B).
The correct answer is A) credit card.
A credit card is an example of revolving credit because it allows you to borrow money up to a certain credit limit. You can use the card to make purchases and then pay back the borrowed amount each month. As long as you don't exceed the credit limit, you can continue to borrow and repay repeatedly. This flexible borrowing and repayment feature is what makes it revolving credit.