Question

credit instrument are based on mutual trust true Or false​

Answer 1

$\huge \mathbb\fcolorbox{black}{lavenderblush}{Answer♡}$

True

Answer 2

Answer:

The above statement is True.

Credit instrument are based on mutual trust as no one can be forced to accept them because they do not have legal approval.

What is a Credit Instrument?

• Items used in place of money are called credit instruments. On a daily basis, almost all people and businesses use some kind of credit instrument.
• Such an instrument may be used in lieu of money provided that both the debtor and the recipient consent to its use and that there is a reasonable expectation that the alternative form of payment will be fulfilled.
• The check is one of the earliest types of a credit instrument. Consumers use checks as a legal method of paying for products and services received, and the check's value is backed by money deposited in a bank account.
• The bank deducts the stated sum indicated on the check by the debtor upon presentation of the check by the intended beneficiary.
• Even though checks are no longer the primary form of credit used in most financial transactions, many companies and people still utilise them.

To learn about similar question click here-

https://brainly.in/question/9658684

To learn about instrument of quallitative credit click here-

https://brainly.in/question/96839