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Questions and Answers
Which of the following is true about credit instruments?
Which of the following is true about credit instruments?
- They are not necessary for a credit transaction
- They can be either written or oral (correct)
- They are always in oral form
- They are always in written form
What is one advantage of having a credit instrument in written form?
What is one advantage of having a credit instrument in written form?
- It reduces the interest rate charged
- It makes the transaction more flexible
- It increases the rights of the debtor
- It allows for easier settlement of disputes (correct)
When does a credit instrument start?
When does a credit instrument start?
- After the credit of the borrower is accepted (correct)
- Before the credit of the borrower is accepted
- It is not related to the credit of the borrower
- At the same time as the credit of the borrower is accepted
Which of the following is true about the reduction of oral contract into a written agreement?
Which of the following is true about the reduction of oral contract into a written agreement?
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What is one advantage of a written agreement in a credit transaction?
What is one advantage of a written agreement in a credit transaction?
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