Question

a company sells a car to a consumer and helps the consumer set up a loan with regular set payments. what type of credit is this?
a. revolving credit
b. a line of credit
c. noninstallment credit
d. installment credit

Explanation:

Installment credit is a type of credit where a borrower receives a lump sum and repays it in fixed, regular payments over a set period, which matches the scenario of a car loan with regular set payments. Revolving credit (A) and line of credit (B) allow repeated borrowing up to a limit with variable payments. Noninstallment credit (C) requires full repayment in a single lump sum, not regular payments.

Answer:

D. Installment credit