12 Questions
What is the primary purpose of obtaining credit?
To receive a sum of money or item of value in exchange for future repayment
Which of the following is typically NOT a source of credit?
Personal savings
Why do businesses regularly seek credit?
All of the above
What is a common reason for individuals to seek credit?
All of the above
What is typically offered by lenders in exchange for providing credit?
Interest payments
Which of the following statements about credit is correct?
Credit can be provided in the form of money or an item of value
Which type of institution helps borrowers and lenders engage in credit transactions?
Commercial Banking
Where do rural banks primarily provide credit services?
Rural areas
What do private development banks focus on?
Economic development
What is the predetermined amount of funds a bank is willing to lend to a borrower known as?
Line of Credit
Which type of institution accumulates savings from depositors and invests them in various assets, including real estate mortgages?
Savings and Mortgage Banking
In what type of agreement are the terms of loans between businesses and banks outlined?
Loan Agreement
This quiz covers the concept of credit, including its arrangement between two parties, repayment terms, interest charges, and various sources of credit in the economy.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
