10 Questions
Short-term credit has a maturity period of over five years.
False
Consumer Credit is granted to individuals by banks and businesses to purchase personal items.
True
Medium-term credit has a maturity period of one to three years.
False
Industrial Credit is used to finance the construction of factory buildings.
True
Commercial Credit is mainly used for personal expenses like groceries and gadgets.
False
Banks are not involved in simplifying the lending and borrowing process.
False
Credit Unions do not facilitate lending and borrowing of funds to provide financial assistance to its members.
False
Non-Banking Finance Companies provide loans to clients at a very low rate of interest.
False
Lending Investors do not provide loans in exchange for interest payments.
False
Pawnshops do not provide secured loans to individuals in exchange for valuable items as collateral.
False
This quiz covers the classification and sources of credit based on maturity periods, including short-term, medium-term, and long-term credit. Different types of credit are explained with respect to their maturity durations and typical usage scenarios.
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