If a consumer makes monthly payments of $250 to pay off a car loan, what type of credit is she using?
a) non-revolving
b) revolving
c) short term
d) unsecured

A) Non-Revolving

Explanation:

There are two types of payment option, revolving credit and non-revolving credit.

For non-revolving credit, there is a fixed interest rate and fixed monthly payment according to agreement to payoff the loan. The consumers fixed monthly payment in this case is $250. Unlike non-revolving credit, there is no fixed payment amount in revolving credit.

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