Question

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
OA

Answer 1

C. A line of credit against which additional debt may be drawn

Explanation:

If the line of credit is "open", money may be borrowed and repaid repeatedly. Usually, the lender will establish some limit on the amount of outstanding debt there may be, but additional funds may be borrowed up to that limit at any time.