ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The finance company is assuming a new debt.
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The finance company is extending credit to a buyer.
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The finance company is creating a savings plan for a buyer.
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The finance company is saving the buyer money on a new loan.
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Detailed explanation-1: -A finance company agrees to loan money to a buyer for a new washer and dryer. What is this an example of? The finance company is extending credit to a buyer.
Detailed explanation-2: -Payments on a credit account include both principal and interest. If there is a problem with a purchase, credit cardholders can withhold payment until it is resolved. Carrying a credit card is much more dangerous than carrying cash.
Detailed explanation-3: -Credit. The ability of a consumer to borrow money with the promise to repay it, plus any interest and fees, at a later date. As examples, credit includes loans and credit cards.
Detailed explanation-4: -Interest is the price that is paid for the use of another’s money. It can be a periodic charge for the use of credit.
Detailed explanation-5: -Most credit cards are revolving credit agreements. If you do not use your credit card within a 12-month period, you do not have to pay the annual fee. If a retail store offers its own credit card, it probably will not accept cards issued by major credit card companies such as Visa or Discover.