Time remaining: 1:20:37 37. Convertibles. Barry, a new car dealer, advertised th

Question

Time remaining: 1:20:37 37. Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a priceo $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirm ation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and- desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. What type of loan was Kathy seeking from ABC Bank? An open-end credit line O A line of credit O An approved line O A direct line O A closed end credit line 0 Type here to search

Explanation / Answer

A line of credit

Explanation- in this specific scenario there is no date given to repay the loan but the interest and base loan value is given by the bank. As Bank does not defined the date it is a line of credit with which availability of credit can be repaid anytime with a given interest.

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