.2 ?
to extend credit; a mortgage on; a charge account, a legal claim, a note, a bond.
.3.
Credit
Credit involves the promise to pay for goods and/or services at some future date. Those who extend credit usually charge an amount of money, called interest, for this service. The main advantage of credit is that it makes it possible to buy more than would be possible, if only cash were used.
People make use of many types of credit including the following:
- credit cards;
- charge accounts;
- bank loans;
- mortgages on property;
- public borrowings through notes and bonds.
Credit cards are used by millions of people. Credit cards are offered by banks, stores, credit companies and others. They are made of plastic, have their own identification numbers and can be used only in particular places. Convenience and money safety are 2 reasons for the wide use of credit cards.
Charge accounts are forms of credit that some businesses extend to customers. A receipt is signed for the purchase, and the customer is billed for purchases at the end of the month. A charge accounts main advantage is its convenience.
Borrowing money at interest from banks is an import form of credit. Commercial loans are taken by business people and usually involve fairly large sums. Personal loans are taken by individuals for personal reasons and usually are for small sums. Interest charges on all loans vary from month to month. Naturally, borrowers try to get loans when the interest cost will be lowest. Many banks charge lower rates of interest to their best customers.
Buyers of land and property make use of mortgage loans for credit. A mortgage is a legal claim against property by a lender. Failure by the borrower to repay the loan and interest on time allows the lender to claim the property. Mortgage credit is widely used in the buying of homes, apartment houses, and commercial buildings. Mortgages make it possible for buyers to buy property they could not buy for cash.
A public borrowing is the one that invites the general public to lend money as an investment. In return they are given notes or bonds which are promises to pay the loans, with interest, at stated periods of time. Some of the types of bonds include the following: corporate bonds, debenture bonds, mortgage bonds, municipal bonds, etc.
.4. .
- What is credit and why has it been a popular way of buying goods and services?
- What are the types of credit? Characterize each of them.
- What is a mortgage? Why is failure to repay the loan dangerous?
.5. credit . .
To lose credit -
To be of the highest credit
To take the credit for
To reject credit
To cancel a credit
To exceed the credit
Credit against goods -
Credit obligations
To be of bad credit -
Credit against securities
.5.
- .
- convenience cards, , American Express, Carte Blanche, Diners Club.
- .
- . , .
- (bank cards), , .
.7. , .
Why in your opinion are credit cards safe and convenient? Can you define the role of government policies in crediting?
