5
QuizLong Text

Credit and Interest

Question 5 • FL-2106010-M/J Civics B

Explain what is meant by credit. What is the function of interest?

Answer

Answer:

Credit is an arrangement that allows someone to borrow money or obtain goods and services now and repay the amount later. Interest is the cost of borrowing money; it compensates the lender for letting the borrower use the money and for the risk of lending it.

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