________ is an agreement whereby a financial institution agrees to lend a borrower amaximum amount of money over a given period of time
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maybe bank is the answer
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Credit is an agreement whereby a financial institution agrees to lend a borrower a maximum amount of money over a given period of time.
Explanation:
- In Economics or Finance,the term credit basically refers to the arrangement in which the borrower such as banks,independent financial agencies or private commercial investors lend funds or money to any borrower a maximum amount of money over fixed stipulated time period.
- During the periodic repayment of the credit,the borrower has to pay a periodic interest payment on the overall loan or credit amount or principle.
- In some instances,as an alternative to periodic interest payment on credit or loan principle,an amortization rate is enforced by the lending entity such as banks or financial institutions which is a constant rate that the borrower has to pay to the lender.
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