ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Extra credit on a test
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Giving someone a birthday gift
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Receiving something with a promise to pay it back
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What you put on top of your hamburger
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Detailed explanation-1: -Credit is a relationship between a borrower and a lender. The borrower borrows money from the lendor. The borrower pays back the money at a later date along with interest. Most people still think of credit as an agreement to buy something or get a service with the promise to pay for it later.
Detailed explanation-2: -A promissory note is a debt instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on-demand or at a specified future date.
Detailed explanation-3: -A Payment Promise is a form you submit to tell us that you plan to make a payment on a past due installment loan. The form contains details about your promise to pay – how much, when and by what method (online, branch, mail).
Detailed explanation-4: -Following the Arrangement, if the counterparty is allowed to repay the amounts due in one payment only, the Arrangement is called a Promise to Pay …
Detailed explanation-5: -Repayment is the act of paying back money previously borrowed from a lender. Typically, the return of funds happens through periodic payments, which include both principal and interest.