Choose whether the given statement is true or false.

The factors that make up a loan agreement are also known as terms of credit.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

True

False

answer is A.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The above statement is true.
Credit is an agreement in which a lender provides a borrower with money or goods with the promise of future repayment. The terms of credit include
1)      Interest Rate: Every loan agreement involves an interest payment along with the repayment of the principal amount.
2)      Collateral: The loan provider keeps an asset of the borrower as a guarantee until the repayment of a loan.
3)      Documentation: Documentation is necessary for a loan.
4)      Mode of repayment: At the time of the loan agreement, both parties decide on the means of paying back.

Watch 3-min video & get full concept clarity