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Closed-end credit refers to a type of credit that provides a borrower with a specified amount of money that must be repaid in full by a designated date, usually in regular installments. This type of credit is commonly associated with loans such as mortgages, car loans, or personal loans.

The characteristic of having a fixed repayment schedule with a definite completion date is what distinguishes closed-end credit from open-end credit (like credit cards), which allows for repeated borrowing and has flexible repayment terms. Generally, closed-end credit obligates the borrower to adhere to the terms regarding the amount borrowed and the schedule for repayment, emphasizing the importance of the specified repayment deadline.

Other options, such as the capacity to borrow repeatedly or the absence of set repayment terms, do not accurately represent closed-end credit because these features are typically associated with open-end credit arrangements. Additionally, while closed-end credit can indeed be used for various purchases, it is not limited to small purchases, as it encompasses larger amounts as well.