ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Terms of credit does not include
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Interest rate
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Collateral
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Cheque
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Mode of repayment
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Explanation:
Detailed explanation-1: -Hence, the correct answer is that savings are not included in terms of credit.
Detailed explanation-2: -Terms of credit have elaborate details like the rate of interest, principal amount, collateral details, and duration of repayment. All these terms are fixed before the credit is given to a borrower.
Detailed explanation-3: -Credit means a loan, an agreement in which the lender (creditor) supplies the borrower with money, goods or services which is to be returned in future. Terms of credit apart from the rate of interest, collateral also includes documentation, mode of repayment.
Detailed explanation-4: -An unsecured loan is a loan that doesn’t require any type of collateral.
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