Which among the following are part of the credit terms?

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Interest rate

Collateral and documentation requirements,

Repayment

All of the above

answer is D.

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Detailed Solution

The interest rate, collateral and documentation requirements, and repayment manner are all part of the credit terms. Credit terms differ significantly from one credit arrangement to the next. They may differ depending on the lender's and borrower's personalities. Every loan agreement states a rate of interest that the borrower must pay to the lender. Demand deposits are a safe way to transfer money. The lender may require collateral, which is an asset owned by the borrower that serves as a guarantee till the loan is returned. If the borrower defaults on the loan, the lender has the right to sell the collateral to recover the money owed to them.

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