ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment refers to
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Debt
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Deposit
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Credit
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Collateral
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Explanation:
Detailed explanation-1: -Collateral refers to the agreement in which the lender supplies the borrower with money, goods, or services in return for future payment.
Detailed explanation-2: -A loan agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party.
Detailed explanation-3: -Interest rate, collateral and documentation requirement and the mode of repayment together comprise what is called the terms of credit.
Detailed explanation-4: -2:Terms of credit include interest rate, collateral (security) and documentation related to the lending of money.
Detailed explanation-5: -Lenders demand any asset of the borrower as collateral security.
There is 1 question to complete.