Revolving credit can best be described as which of the following?

Revolving credit is effectively a flexible line of credit that allows borrowers to draw funds, pay them back, and then borrow again up to a certain limit. This characteristic enables borrowers to manage their cash flow more dynamically, as they can use the credit as needed without reapplying for a new loan each time.

For instance, a credit card is a common example of revolving credit, where the cardholder can make purchases, pay off the balance over time or in full, and then have access to that credit once again as it's repaid. This continuous cycle distinguishes revolving credit from fixed-term loans, which do not allow for additional borrowing once the initial loan is disbursed. Therefore, describing revolving credit as a line of credit that can be used, repaid, and reused accurately captures its essence and functionality in financial management.