Distinguish between the following concepts (ANY TWO): credit, short-term loans, economic and social infrastructure.
Understand the Problem
The question seems to be from an exam paper related to economics, asking students to distinguish between different concepts in economics and provide explanations for certain terms. It requires clarification of economic principles and their applications.
Answer
Credit is borrowing money with repayment, while short-term loans are repaid in under a year.
Credit refers to the ability to borrow money with the promise to repay it later, usually with interest. Short-term loans are a form of credit with a repayment period typically under one year, used to finance immediate needs.
Answer for screen readers
Credit refers to the ability to borrow money with the promise to repay it later, usually with interest. Short-term loans are a form of credit with a repayment period typically under one year, used to finance immediate needs.
More Information
Credit can be in the form of loans, credit cards, or lines of credit. Short-term loans are often used for immediate expenses, such as inventory purchases or emergency costs.
Tips
A common mistake is not distinguishing repayment times. Be clear about time frames for different credit types.
Sources
- Types of Finance and Financial Services - Investopedia - investopedia.com
- Short/Current Long-Term Debt Account: Meaning, Overview, Examples - investopedia.com
