The Three Components of Credit Policy Are

question 17

Multiple Choice

The three components of credit policy are:

• A)collection policy,credit analysis,and interest rate determination.
• B)collection policy,credit analysis,and terms of the sale.
• C)collection policy,interest rate determination,and repayment analysis.
• D)credit analysis,repayment analysis,and terms of the sale.
• E)interest rate determination,repayment analysis,and terms of sale.

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Definitions:

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.

Trade

The process of purchasing, selling, or trading goods and services among individuals, companies, or nations.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance without excess supply or demand.

Tax Policy

The set of laws and regulations governing how taxes are collected, managed, and utilized by a government.