Question

select the correct answer from each drop-down menu. in which type of credit does the bank allow you to borrow money up to a specific amount? in drop - down, the bank allows you to borrow money up to a specific amount, which is your drop - down.

Explanation:

• For the first blank: A "line of credit" is a type of credit where a bank sets a maximum amount (credit limit) that a borrower can access and borrow from as needed, repaying and reborrowing within that limit. Other credit types like installment loans (fixed amount, fixed payments) don't fit this "borrow up to a specific amount" with flexibility to draw as needed.
• For the second blank: The "credit limit" is the specific maximum amount the bank permits borrowing under a line of credit; it defines the upper bound of how much can be borrowed from that line.

Answer:

In a line of credit, the bank allows you to borrow money up to a specific amount, which is your credit limit.