Question

Open-ended credit is credit for which debtors are given a specified amount of credit to purchase specific consumer goods and intangible goods.

Answer 1

Answer: False

Step-by-step explanation:

Open-ended credit does not work by specified borrowing amounts given to a debtor to purchase specific goods.

Rather it works by giving the debtor a limit on the amount they can borrow and they are allowed to borrow whatever amount they want within that limit.

The credit described in the question is a close-ended credit.