Which of the following is not an element of installment credit?A.Repayment scheduleB.Fixed paymentC.Fixed loan amountD.Line of creditSUBMITarrow_backPREVIOUS

Analyzing the Options

To determine which option is not an element of installment credit, we need to understand what installment credit includes:

1. Repayment Schedule: A structured plan that outlines how and when payments will be made. This is a fundamental element of installment credit.

2. Fixed Payment: Installment credit typically involves making consistent payments over a specified period. Therefore, this is also a key feature.

3. Fixed Loan Amount: In installment credit, the amount borrowed is usually fixed, meaning the borrower receives a set amount that is to be paid back over time.

4. Line of Credit: A line of credit is different from installment credit; it allows borrowers to draw on a credit limit and make variable payments, and it does not have a fixed repayment schedule.

Conclusion

The answer is D. Line of credit, as it does not represent an element of installment credit. Instead, it is a different form of credit that provides more flexibility in borrowing and repayment terms.