Credit Instruments and Documentation Quiz
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Questions and Answers

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?

  • 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?

  • 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?

    <p>It is a development of modern-day credit usage</p> Signup and view all the answers

    What is one advantage of a written agreement in a credit transaction?

    <p>It provides clear terms and details of the transaction</p> Signup and view all the answers

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