Which of the following best describes 'revolving debt'?

A) A loan with a fixed payment schedule and a set end date, like a mortgage.

B) Debt that can be repeatedly used and repaid, such as a credit card balance.

C) A one-time loan that must be paid back in a single lump sum.

D) Debt that is tied to a physical asset, like a car loan.

Explanation

Revolving debt refers to an account that allows you to borrow money repeatedly up to a certain limit, repay it, and then borrow again. Credit cards are the most common example of revolving debt, where the outstanding balance changes as you make purchases and payments.

Practice More General Knowledge Questions