What is the total amount of money you have borrowed from a credit account and NOT paid back to the lender, including any interest charges?

• A. Credit
• B. Installment credit
• C. Unpaid account balance
• D. Credit limit

Answer: (C)

The thing being described is the unpaid balance on a credit account. This is the total amount you currently owe, including both the principal you borrowed and any interest or fees that have accumulated but haven’t yet been paid. It’s the sum that would be paid off if you settled the account now, bringing the balance to zero.

This is different from the credit limit, which is just the maximum amount you’re allowed to borrow, not what you owe. It’s also not just a label for a type of credit or for credit in general. The specific idea here is the amount outstanding—the outstanding or unpaid balance—that reflects how much debt remains on the account. For example, if you borrowed $1,000 and $100 in interest has accrued, and you haven’t paid anything yet, the unpaid balance is $1,100. If you make a payment, that balance decreases accordingly.