ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following is the correct definition for the term credit?
|
|
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
|
|
|
a fee applied to money borrowed
|
|
|
Either A or B
|
|
|
None of the above
|
Explanation:
Detailed explanation-1: -The correct option is D Interest rate. 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-2: -Credit is the ability to borrow money or access goods or services with the understanding that you’ll pay later.
Detailed explanation-3: -Credit is when giving services & goods in the name of trust. This means that you can pay for the purchases later.
There is 1 question to complete.