10 Questions
What is the maturity period for short-term credit?
Less than one year
Which type of credit is used for major investments like buying a house or starting a business?
Long-term credit
What is the main purpose of agricultural loans?
Maximizing profits through efficient credit usage
Industrial credit is commonly used for financing which of the following?
Construction of factory buildings and purchase of machinery
Which entity typically grants consumer credit to individuals for personal purchases?
Savings and loan associations for home loans
What is the main function of banks as financial intermediaries?
Facilitating lending and borrowing processes
Which financial intermediary primarily engages in peer-to-peer lending platforms?
Lending Investors
What distinguishes pawnshops from other financial intermediaries?
Providing secured loans in exchange for collateral
In what way do non-banking finance companies differ from banks?
Advancing loans at a very high rate of interest
What kind of financial intermediary offers flexible, revolving credit accounts to businesses?
Banks
Learn about the classification and sources of credit based on maturity periods. Understand short-term, medium-term, and long-term credit and their typical uses in financial contexts.
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