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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debt
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interest
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Detailed explanation-1: -The amount of money borrowed from the bank is called the loan, and the extra amount of money paid back to the bank other than the loan is called the interest.
Detailed explanation-2: -A lender can file a civil suit for recovering the money owed through promissory note or loan agreement. He can do so under Order 37 of CPC which allows the lender to file a summary suit. Drafting the summary lawsuit is the initial step in this process, after which the borrower should be served with the summons.
Detailed explanation-3: -The concept of a loan is pretty straightforward: first you borrow money, and then you repay it. But the amount that you must repay is more than the amount you borrow. This is due to interest and fees, which is what a lender charges you for the use of its money. It is also referred to as a finance charge.
Detailed explanation-4: -The principal–the money that you borrow. The interest–this is like paying rent on the money you borrow.