Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Which of the following refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment?

Options:

Deposit

Loan

Cash reserves

Liquidity reserves

Correct Answer:

Loan

Explanation:

A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.