A specified amount of money, a loan

• A. Open-Ended Credit
• B. Installment Loan
• C. Closed-End Credit
• D. Service Credit

Answer: (C)

Closed-end credit is a loan for a specific amount that is disbursed at once and repaid in fixed installments over a set period. The idea here is a one-time loan of a predetermined sum, with a schedule that finishes when you’ve paid it off. This distinguishes it from open-ended credit, where you can borrow again up to a limit (like a credit card), and from service credit, where you pay after receiving a service. An installment loan is a common example of closed-end credit because it involves a lump-sum loan and regular, scheduled payments until it’s fully repaid.