Which of the following best describes a "closed-end" loan?

A "closed-end" loan is characterized by having a fixed repayment amount and term. This type of loan is set up to be paid back in full by a specified maturity date, meaning that the borrower receives a specific amount of money, which they must repay over a predetermined schedule. Common examples of closed-end loans include auto loans and mortgages, where the borrower cannot borrow additional funds beyond the agreed amount without applying for a new loan.

In contrast, other options do not align with the definition of a closed-end loan. For instance, loans that can be renewed indefinitely suggest a revolving credit structure, typically associated with open-end loans such as credit cards. Similarly, a loan that combines credit card and mortgage features does not fit neatly into the closed-end category, as it implies a flexible borrowing capacity beyond the fixed terms of repayment. Lastly, any loan, including closed-end loans, is required to disclose interest rates to comply with Truth in Lending regulations, so an option indicating that no disclosure is necessary does not accurately describe any legitimate loan type.