what is an open line of credit? a. a line of credit which has no current balance. b. a line of credit with a…
what is an open line of credit? a. a line of credit which has no current balance. b. a line of credit with a variable interest rate. c. a line of credit against which additional debt may be drawn. d. a line of credit which has no credit history requirements. please select the best answer from the choices provided
Answer
Answer:
C. A line of credit against which additional debt may be drawn.
Brief Explanations:
An open - line of credit allows borrowers to take on more debt up to a certain limit as long as they meet repayment terms. Options A, B, and D do not define an open - line of credit. A lack of current balance (A), variable interest rate (B), or no credit history requirement (D) are not the core characteristics of an open line of credit.