Classification of Credit and Sources
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Questions and Answers

Which financial intermediaries are cooperative units that provide financial assistance to its members through lending and borrowing of funds?

  • Banks
  • Pawnshops
  • Credit Unions (correct)
  • Non-Banking Finance Companies
  • What types of financial intermediaries are known for simplifying the lending and borrowing process on a large scale?

  • Lending Investors
  • Non-Banking Finance Companies
  • Credit Unions
  • Banks (correct)
  • What type of financial company engages in advancing loans at high rates of interest?

  • Non-Banking Finance Companies (correct)
  • Credit Unions
  • Pawnshops
  • Lending Investors
  • Which financial intermediaries are individuals or companies that provide loans in exchange for interest payments, often through peer-to-peer lending platforms?

    <p>Lending Investors</p> Signup and view all the answers

    What type of credit provides businesses with a lump sum of capital that can be used for expansion or equipment purchases?

    <p>Small business loans</p> Signup and view all the answers

    What is the maturity period of short-term credit?

    <p>Less than one year</p> Signup and view all the answers

    Which type of credit is typically used for major investments like buying a house or starting a business?

    <p>Industrial credit</p> Signup and view all the answers

    What does consumer credit refer to?

    <p>Loan funds granted to individuals to purchase personal items</p> Signup and view all the answers

    In the classification of credit by purpose, what does commercial credit finance?

    <p>Marketing of commodities</p> Signup and view all the answers

    What distinguishes agricultural loans from other types of loans in terms of purpose?

    <p>Time of usage and rate of returns</p> Signup and view all the answers

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