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Questions and Answers
What is the first criterion mentioned in the text for granting credit?
What is the first criterion mentioned in the text for granting credit?
- Stable money standard
- Availability of credit sources
- Ability to provide collateral
- Evaluation of credit rating (correct)
Why must creditors have absolute confidence in the debtors' character and ability according to the text?
Why must creditors have absolute confidence in the debtors' character and ability according to the text?
- To increase the debtors' burden
- To discourage debtors from seeking credit
- To ensure prompt payment of debts (correct)
- To avoid granting credit
What is the consequence of money not being stable, as per the text?
What is the consequence of money not being stable, as per the text?
- Decrease in creditors' willingness to lend (correct)
- Increase in interest rates
- Enhancement of purchasing power
- Enforcement of loan repayment by the government
How does credit function as a power according to the text?
How does credit function as a power according to the text?
What role does the government play in enforcing loan repayment based on the text?
What role does the government play in enforcing loan repayment based on the text?
Why are proper facilities for credit operations necessary according to the text?
Why are proper facilities for credit operations necessary according to the text?
What is a key characteristic of consumer credit?
What is a key characteristic of consumer credit?
What type of credit is typically used for the purchase of fixed assets or for carrying out business operations?
What type of credit is typically used for the purchase of fixed assets or for carrying out business operations?
What is a motivation behind consumer credit according to the text?
What is a motivation behind consumer credit according to the text?
Which credit type involves only the length of time needed to process and resell goods?
Which credit type involves only the length of time needed to process and resell goods?
What is the main function of commercial bank credit according to the text?
What is the main function of commercial bank credit according to the text?
What is a common characteristic of mercantile credit based on the text?
What is a common characteristic of mercantile credit based on the text?
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