ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
|
|
|
an act of lending something to someone.
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest or finance charges to the principal value which the borrower must repay in addition to the principal balance.
Detailed explanation-2: -Sum of money that is borrowed and is expected to be paid back with interest is called debt.
Detailed explanation-3: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-4: -When you take out a loan, lenders earn money by charging interest. In other words, interest is the price you pay for borrowing money from a lender. That means, when paying back the loan, you’ll pay the amount you borrowed plus an additional sum-which is the interest.
Detailed explanation-5: -Home loan. Loan against property (LAP) Loans against insurance policies. Gold loans.