Which of the Following Is True of an Open-End Credit

question 65

Multiple Choice

Which of the following is true of an open-end credit transaction?

• A) An open-end transaction gives a debtor the option to pay in installments.
• B) An open-end transaction includes a personal customer loan or a student loan.
• C) An open-end transaction is for a limited time period.
• D) An open-end transaction must be in writing.

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Definitions:

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, meaning everyone pays the same percentage of their income.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, burdening wealthier individuals more.

Progressive Tax

A tax system in which tax rates increase as the taxable amount increases, placing a higher tax burden on individuals with higher incomes.