Credit is given by institution to a consumer for the promised payment in the future. True or false?

Understand the Problem

The question is asking whether the statement about credit being provided by an institution to a consumer for future payment is true or false.

More Information

Credit is a financial agreement between a lender and a borrower. The lender provides the borrower with money, goods, or services, which are expected to be paid back at a later date. This concept is fundamental in many financial transactions, including loans and credit cards.

Tips

A common misunderstanding is thinking credit is only monetary; it also includes goods and services.

Sources

• The Definition of Credit and Why You Need It - NerdWallet - nerdwallet.com
• Understanding the Types and Sources of Consumer Credit - wolterskluwer.com
• Credit Definition & Meaning - Merriam-Webster - merriam-webster.com