ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit
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Budget
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Profit
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Interest
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Detailed explanation-1: -A debt is the sum of money that is borrowed for a certain period of time and is to be return along with the interest. The amount as well as the approval of the debt depends upon the creditworthiness of the borrower.
Detailed explanation-2: -There are two main parts of a loan: The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.
Detailed explanation-3: -Debt is anything owed by one party to another. Examples of debt include amounts owed on credit cards, car loans, and mortgages.
Detailed explanation-4: -Installment Loan An installment loan is a loan with a fixed repayment period listed in the loan agreement. For example, let’s say you take out a personal loan to refinance high-interest debt. Once you receive the lump sum payment, the lender will require you to make monthly payments or installments to repay the loan.
Detailed explanation-5: -Home loan. Loan against property (LAP) Loans against insurance policies. Gold loans.