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Questions and Answers
Which of the following is an example of saving?
What is the meaning of the word 'Credit'?
Which of the following is NOT a reason to save?
Which of the following is an element of credit/lending policy?
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What does the term 'deferred consumption' mean?
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Study Notes
Saving and Credit
- Saving involves setting aside a portion of one's income for future use, such as building an emergency fund, retirement, or large purchases.
- Credit refers to the ability to borrow money or access goods and services with the promise to pay later, often with interest or fees.
Reasons to Save
- NOT saving for impulsive or luxury purchases, as this is not a responsible or prudent use of one's income.
Credit/Lending Policy
- One element of credit/lending policy is the interest rate, which is the percentage of the borrowed amount charged as interest over a specific period.
Deferred Consumption
- Deferred consumption means sacrificing current consumption or spending in order to save for future needs or goals, such as retirement, education, or a down payment on a house.
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Description
Test your knowledge on credit management principles and concepts with this quiz by CDA Region IVA. Explore topics such as savings, credit/lending policy, effective credit processes, and more. Test your understanding of credit management practices and enhance your knowledge in this important field.
