Explain the terms 'collateral' and 'terms of credit'. -SST 10th

Explain the terms 'collateral' and 'terms of credit'. -SST 10th
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Collateral is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. The terms of credit refer to the interest rate, collateral, the documents required and the mode of repayment when they are taken together. The terms of credit differ significantly from one credit arrangement to another. They may vary depending on the nature of the lender and the borrower.
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If xylem and phloem are arranged in the same radius, such a vascular bundle is called : (1) collateral (2) bicollateral (3) concentric (4) radial

Description : If xylem and phloem are arranged in the same radius, such a vascular bundle is called : (1) collateral (2) bicollateral (3) concentric (4) radial

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c. Explain with an example of how the terms of credit can be unfavourable for the small farmer. -Economics 10th

Description : c. Explain with an example of how the terms of credit can be unfavourable for the small farmer. -Economics 10th

Last Answer : When a small scale farmer borrows money from a bank, he has to repay the amount at a fixed rate of interest. For example, if a farmer borrows money from the bank and during the harvest season his ... not be able to repay the amount loaned him by the bank and will further fall into the debt trap.

What are the terms of credit? -SST 10th

Description : What are the terms of credit? -SST 10th

Last Answer : . Every loan agreement specifies an interest rate which the borrower must pay to the lender along with repayment of the principal. . In addition, lender may demand collateral, i.e., an asset ... credit arrangement to another. They may vary depending on the nature of the lender and the borrower.

Why are terms of credit required for a loan or credit? -SST 10th

Description : Why are terms of credit required for a loan or credit? -SST 10th

Last Answer : . Terms of credit are required so that the borrower knows the conditions to take the loan. . The collateral, in the form of security or guarantee, is given to the lender until the loan is repaid ... the loan, the lender has all the rights to sell the assets or collateral to obtain the payment.

What do you understand by “terms of credit”? -SST 10th

Description : What do you understand by “terms of credit”? -SST 10th

Last Answer : Interest rate, collateral and documentation requirement, and the mode of repayment together are called the terms of credit.

While taking a loan, borrowers look for easy terms of credit. What do is this mean? -SST 10th

Description : While taking a loan, borrowers look for easy terms of credit. What do is this mean? -SST 10th

Last Answer : This means low interest rate, easy conditions for repayment and less collateral and documentations requirements.

What does credit mean? What are the terms of the credit? -SST 10th

Description : What does credit mean? What are the terms of the credit? -SST 10th

Last Answer : Credit refers to an agreement in which lender supplies the borrowers with money,goods and services in return for the promise of future payments. Terms of credit includes the following: (i) ... of the principal. In addition to this lenders may demand collateral (security) against the loans.

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that a. the customer must pay the bill within 10 days. b. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. c. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. d. two sales returns can be made within 10 days of the invoice date and no returns thereafter.

Description : The credit terms offered to a customer by a business firm are 2/10, n/30, which means that a. the customer must pay the bill within 10 days. b. the customer can deduct a 2% discount if the ... date. d. two sales returns can be made within 10 days of the invoice date and no returns thereafter.

Last Answer : c. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfilment of its terms and conditions. What is this arrangement known in banking context? A. Line of Credit B. Loan to Client C. Loan on Credit D. Letter of Credit

Description : Banks issue a letter to beneficiary on behalf of its constituents like guarantee for making payment on their behalf on fulfilment of its terms and conditions. What is this arrangement known in banking context? A. Line of Credit B. Loan to Client C. Loan on Credit D. Letter of Credit

Last Answer : D. Letter of Credit Explanation: A letter issued by a bank to another bank (especially one in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.

In terms of consumer demand and spending behaviour, marketers are most interested in 1. wealth 2. consumer credit 3. disposable income 4. pretax income 5. high incomes

Description : In terms of consumer demand and spending behaviour, marketers are most interested in 1. wealth 2. consumer credit 3. disposable income 4. pretax income 5. high incomes

Last Answer : disposable income

Hale Company sells merchandise on account for $1,500 to Kear Company with credit terms of 2/10, n/30. Kear Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? a. $1,470 b. $1,476 c. $1,200 d. $1,176

Description : Hale Company sells merchandise on account for $1,500 to Kear Company with credit terms of 2/10, n/30. Kear Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount ... is the amount of the check? a. $1,470 b. $1,476 c. $1,200 d. $1,176

Last Answer : d. $1,176

Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the amount of Company B's check? a. $350 b. $490 c. $450 d. $400

Description : Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the amount of Company B's check? a. $350 b. $490 c. $450 d. $400

Last Answer : b. $490

A credit sale of $900 is made on July 15, terms 2/10, n/30, on which a return of $50 is granted on July 18. What amount is received as payment in full on July 24? a. $900 b. $833 c. $850 d $882

Description : A credit sale of $900 is made on July 15, terms 2/10, n/30, on which a return of $50 is granted on July 18. What amount is received as payment in full on July 24? a. $900 b. $833 c. $850 d $882

Last Answer : b. $833

Holt Company sells merchandise on account for $2,000 to Jones Company with credit terms of 2/10, n/30. Jones Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? a. $1,960 b. $1,968 c. $1,600 d. $1,568

Description : Holt Company sells merchandise on account for $2,000 to Jones Company with credit terms of 2/10, n/30. Jones Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount ... the amount of the check? a. $1,960 b. $1,968 c. $1,600 d. $1,568

Last Answer : d. $1,568

Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is the amount of Company Y's check? a. $280 b. $392 c. $360 d. $320

Description : Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is the amount of Company Y's check? a. $280 b. $392 c. $360 d. $320

Last Answer : b. $392

The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to a. Sales Discounts for $15. b. Cash for $735. c. Accounts Receivable for $750. d. Sales for $750.

Description : The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to a. Sales Discounts for $15. b. Cash for $735. c. Accounts Receivable for $750. d. Sales for $750.

Last Answer : c. Accounts Receivable for $750.