Podcast
Questions and Answers
What is the primary consideration in granting credit according to the origin of the word creditum?
What is the primary consideration in granting credit according to the origin of the word creditum?
- Confidence
- Futurity
- Risk
- Trust (correct)
What distinguishes a credit transaction from a cash transaction?
What distinguishes a credit transaction from a cash transaction?
- Risk involved
- Element of time or futurity (correct)
- Confidence in the creditor
- Use of goods
What is the vital link between production and distribution, according to the text?
What is the vital link between production and distribution, according to the text?
- Promotion of full employment
- Consumer credit (correct)
- Governmental endeavors
- Private businesses
What aspect of credit introduces the element of risk for the creditor?
What aspect of credit introduces the element of risk for the creditor?
From the creditor's viewpoint, what does credit represent?
From the creditor's viewpoint, what does credit represent?
What is the primary basis for a personal contract involving credit transactions?
What is the primary basis for a personal contract involving credit transactions?
How does credit give fluidity to wealth?
How does credit give fluidity to wealth?
In a credit transaction, what does the creditor do to demonstrate faith in the debtor?
In a credit transaction, what does the creditor do to demonstrate faith in the debtor?
What is a characteristic of credit transactions related to deferred payment for goods and services?
What is a characteristic of credit transactions related to deferred payment for goods and services?
How does credit serve as an agent of production?
How does credit serve as an agent of production?
Flashcards are hidden until you start studying
