Answer :
In this case, all the options except "O credit cards" are considered installment loans. Let's break it down:
1. Car loans: These are installment loans because you borrow a specific amount of money for a car and agree to pay it back with interest in fixed monthly payments over a set period of time.
2. Mortgages: Similarly, mortgages are installment loans as well. When you take out a mortgage to buy a house, you borrow money from a lender and repay it in fixed monthly installments over a number of years.
3. Student loans: Student loans also fall under the category of installment loans. Students borrow money to fund their education and then repay the loan amount with interest in fixed monthly payments after graduation.
4. Credit cards: Credit cards, on the other hand, are revolving credit. Unlike installment loans where you borrow a fixed amount and pay it back over time, with credit cards, you have a credit limit and can choose how much to borrow each month. The amount you owe can vary, and you have the option to pay the full balance or a minimum payment each month.
So, in summary, credit cards differ from the other options provided because they are not installment loans but rather a form of revolving credit.
