Target Exam

CUET

Subject

General Aptitude Test

Chapter

General Knowledge

Topic

Economics

Question:

What do you understand by the term "Terms of credit"?

Options:

Interest rate and collateral

Mode of repayment

Documentation required

All of the above

Correct Answer:

All of the above

Explanation:

Interest rate, collateral and documentation requirement, and the mode of repayment together comprise what is called the terms of credit. The terms of credit vary substantially from one credit arrangement to another. They may vary depending on the nature of the lender and the borrower.