what is credit how does credit play a vital and positive role explain with an example
Answers
Answered by
2
credit means :: The ability of a customer to obtain goods or services before payment,
based on the trust that payment will be made in the future...
example: The amount of money available to spend in a bank charge account or the funds added to checking account...
based on the trust that payment will be made in the future...
example: The amount of money available to spend in a bank charge account or the funds added to checking account...
Answered by
8
Credit, or loan, is when a person borrows money, goods or services from another person with a promise of future repayment.
Credit plays a vital and positive role as it helps people who are in need of money to fulfil their needs.
For example, Salim, a producer of shoes received an order of shoes. He took a loan from a bank to purchase raw materials. He is able to fulfil the order. He gets a lot of profit, repays the loan with interest and hence benefits. Credit plays a positive role in this situation.
Credit plays a vital and positive role as it helps people who are in need of money to fulfil their needs.
For example, Salim, a producer of shoes received an order of shoes. He took a loan from a bank to purchase raw materials. He is able to fulfil the order. He gets a lot of profit, repays the loan with interest and hence benefits. Credit plays a positive role in this situation.
Similar questions