Podcast
Questions and Answers
Which of the following is an example of saving?
Which of the following is an example of saving?
What is the meaning of the word 'Credit'?
What is the meaning of the word 'Credit'?
Which of the following is NOT a reason to save?
Which of the following is NOT a reason to save?
Which of the following is an element of credit/lending policy?
Which of the following is an element of credit/lending policy?
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What does the term 'deferred consumption' mean?
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.
