Podcast
Questions and Answers
What is the etymological origin of the word 'credit'?
What is the etymological origin of the word 'credit'?
- It stems from the Sanskrit word 'kreda' meaning 'financial trust'
- It comes from the Latin word 'credo' meaning 'I believe' or 'I trust' (correct)
- It is derived from the French word 'creditum' meaning 'to entrust'
- It originates from the Greek word 'kreditos' meaning 'to lend'
What does the element of time or futurity refer to in the context of credit?
What does the element of time or futurity refer to in the context of credit?
- It refers to the time required for credit approval
- It refers to the time taken to build credit history
- It refers to the duration of a loan or credit arrangement
- It refers to the specified lapse of time after which payment is to be made (correct)
In economics, how is the term 'credit' interpreted?
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 (correct)
- As a method of barter exchange between individuals
- As a form of collateral for financial transactions
- As a means of immediate payment for goods and services
What does the term 'credit' signify in the field of economics?
What does the term 'credit' signify in the field of economics?
What are some characteristics of credit that are of prime importance when extending credit to an individual or business?
What are some characteristics of credit that are of prime importance when extending credit to an individual or business?
Credit is not related to trust or confidence in another person in any way.
Credit is not related to trust or confidence in another person in any way.
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.
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.
When extending credit to an individual or business, capacity is not a characteristic of prime importance.
When extending credit to an individual or business, capacity is not a characteristic of prime importance.
The element of time in credit does not matter as long as payment is made after the specified lapse of time.
The element of time in credit does not matter as long as payment is made after the specified lapse of time.
Receiving deposits is not one of the functions of credit.
Receiving deposits is not one of the functions of credit.
Flashcards are hidden until you start studying
