Solution:
Terms of credit do not include bank deposits.In addition to making principal payments, each loan agreement specifies an interest rate that the borrower must pay to the lender. The lender may also require collateral, which is a property owned by the borrower and used as a guarantee until the loan is repaid. If the borrower fails on the loan, the lender has the right to sell the collateral to reclaim the money. The conditions of credit include the interest rate, required collateral and documentation, and the manner of repayment. The conditions of credit vary greatly from one credit arrangement to another. In addition, they may differ depending on the borrower and lender.
