Question : Which of the following is a feature of a credit card?
Option 1: High-interest rate
Option 2: Pre-approved credit limit
Option 3: Fixed repayment scheduled
Option 4: No annual fee
Correct Answer:
Pre-approved credit limit
Solution : b). Pre-approved credit limit
A pre-approved credit limit is a feature of a credit card. When a credit card is issued, the cardholder is assigned a pre-approved credit limit by the issuing bank. This credit limit represents the maximum amount of money that can be borrowed using the credit card. The cardholder can make purchases or withdraw cash up to this limit and is required to repay the borrowed amount within a specified period. The credit limit is determined by various factors, including the individual's creditworthiness and income. Therefore, the correct answer is option b). Pre-approved credit limit.
