Which of the Following Statements Is True Regarding Non-Installment Credit

question 121

Multiple Choice

Which of the following statements is true regarding non-installment credit?

• A) The borrower has a longer time to repay.
• B) Monthly payments of principal and interest must be paid.
• C) The borrower has an unlimited amount of credit.
• D) Credit is usually issued for 30 days or less.

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Definitions:

Bankruptcy Relief

Legal measures available to individuals or corporations that cannot meet their financial obligations, allowing for reorganization or discharge of debts.

Preferential Payment

A financial transaction that gives prior payment to one creditor over others before a debtor's bankruptcy.

Insolvent Debtor

A debtor who cannot pay debts in a timely fashion.

Purchase Money Security Interest

A legal claim that allows creditors to repossess or claim goods as collateral if the buyer fails to meet the terms of the credit agreement, specifically concerning goods that were purchased with the loan.