All of the Following Are Correct Statements About Credit Except

question 35

Multiple Choice

All of the following are correct statements about credit except

• A) creditor provides funds.
• B) credit needs to be paid back in the future.
• C) repayment will include interest.
• D) the interest is the total amount to be repaid.

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Definitions:

Consumption

The use of goods and services by households or individuals for personal needs or enjoyment, as opposed to investment or production purposes.

Supply of Savings

The total amount of savings that individuals and institutions are willing to lend or invest, available in the economy.

Interest Rates

The fee that lenders impose on borrowers for utilizing funds, represented as a percentage of the principal sum.

Investment

The process of distributing funds with the aim of earning an income or profit.