The useful idea
- The useful idea
Credit (from Latin creditum, "loan") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby
- How it works
generating a debt), but promises either to repay or return those resources (or other materials of equal value) at a later date.
- Why it matters
The resources provided by the first party can be either property, fulfillment of promises, or performances.
Why this matters
Use Credit to compare the trade-offs before committing money.
Try this
Use Credit to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Credit?
- How it works
- The useful idea — correct
- Why it matters
Credit (from Latin creditum, "loan") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby
General education only — not personal financial advice.