10 Questions
What is the etymological origin of the word 'credit'?
It comes from the Latin word 'credo' meaning 'I believe' or 'I trust'
What does the element of time or futurity refer to in the context of credit?
It refers to the specified lapse of time after which payment is to be made
In economics, how is the term 'credit' interpreted?
As trusting in the solvency of a person or making a payment to be received back after some time
What does the term 'credit' signify in the field of economics?
Reposing trust or confidence in somebody
What are some characteristics of credit that are of prime importance when extending credit to an individual or business?
Confidence and capacity
Credit is not related to trust or confidence in another person in any way.
False
The term 'credit' is not interpreted in economics as trusting in the solvency of a person or making a payment to a person to receive it back after some time.
False
When extending credit to an individual or business, capacity is not a characteristic of prime importance.
False
The element of time in credit does not matter as long as payment is made after the specified lapse of time.
True
Receiving deposits is not one of the functions of credit.
False
Test your knowledge about the concept of credit with this quiz. Explore the meaning of credit, its historical origins, and its significance in financial transactions. Ideal for those interested in understanding the trust and time elements associated with credit.
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