Which of the Following Is the Best Definition of a Credit

question 296

Multiple Choice

Which of the following is the best definition of a credit cost curve.

• A) The process of quantifying the probability of default when granting consumer credit.
• B) The length of time that credit is granted.
• C) The evidence of indebtedness.
• D) Graphical representation of the sum of the carrying costs and the opportunity costs of a credit policy.
• E) The process of determining the probability that customers will or will not pay.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at a given price.

Tax Revenue

Income that is gained by governments through taxation, used to fund public services and government obligations.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, typically downward sloping to the right.

Tax

Mandatory monetary contributions or taxes levied by a government on people or organizations to support government spending.