Credit Concepts Quiz

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What does the term 'credit' signify?

A legal document for financial transactions

An agreement to repay borrowed money at a later date

Trust or confidence reposed in another person (correct)

A financial transaction involving goods and services

In economics, how is credit interpreted?

Issuing currency and regulating its circulation

Investing in stocks and bonds for future returns

Exchanging goods and services without immediate payment

Trusting in the solvency of a person or making a payment to be received back later (correct)

What are some characteristics of credit that are of prime importance when extending credit to an individual or business?

Credit utilization, payment behavior, length of credit history, new credit, credit mix

Credit history, income, employment status, debt-to-income ratio, payment history

Confidence, capacity, security, goodwill, size of credit, period of credit (correct)

Interest rate, credit score, loan term, collateral, credit limit

What are the functions of credit in the context of economy and finance?

Economy in the use of money, easy exchange and remittance, helpful to production, promotion of trade Signup and view all the answers

What is the interpretation of credit in terms of promoting trade, especially foreign trade?

An enabler for trade expansion and facilitator of international transactions Signup and view all the answers

What does the term 'credit' signify?

Reposing trust or confidence in somebody Signup and view all the answers

In economics, how is credit interpreted?

As trusting in the solvency of a person or making a payment to receive it back after some time Signup and view all the answers

What are some characteristics of credit that are of prime importance when extending credit to an individual or business?

Confidence, capacity, security, goodwill Signup and view all the answers

What is the function of credit related to 'economy in the use of money'?

It promotes efficient use of money without wastage Signup and view all the answers

What is the significance of 'timing' in the context of credit?

It relates to the appropriate moment for extending credit Signup and view all the answers

Credit Concepts Quiz

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Questions and Answers

What does the term 'credit' signify?

In economics, how is credit interpreted?

What are some characteristics of credit that are of prime importance when extending credit to an individual or business?

What are the functions of credit in the context of economy and finance?

What is the interpretation of credit in terms of promoting trade, especially foreign trade?

What does the term 'credit' signify?

In economics, how is credit interpreted?

What are some characteristics of credit that are of prime importance when extending credit to an individual or business?

What is the function of credit related to 'economy in the use of money'?

What is the significance of 'timing' in the context of credit?

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