Why is credit a helpful tool for businesses and consumers?A.It allows them to borrow money that can be paid back later.B.It prevents banks from charging them interest on loans.C.It rewards them for saving a large percentage of their earnings.D.It keeps their money safe and easily accessible in a bank.
Question
Why is credit a helpful tool for businesses and consumers?A.It allows them to borrow money that can be paid back later.B.It prevents banks from charging them interest on loans.C.It rewards them for saving a large percentage of their earnings.D.It keeps their money safe and easily accessible in a bank.
Solution
Credit is a helpful tool for businesses and consumers primarily because of option A: It allows them to borrow money that can be paid back later. This can be particularly useful for businesses that need to invest in new equipment or other resources to grow their operations, or for consumers who need to make large purchases like a car or a house. The ability to borrow money and pay it back over time can make these large expenses more manageable.
Option B is not correct because credit actually involves paying interest on loans, not preventing it. Banks and other lenders charge interest as a way to make money from the loans they provide.
Option C is also not correct. While saving money is generally a good financial practice, credit doesn't directly reward consumers or businesses for saving. Instead, good credit can be built by consistently paying off debts on time.
Option D is not correct because while banks do offer services to keep money safe and easily accessible, this is not directly related to credit. Credit involves borrowing money, not storing it.
Similar Questions
Credit is a helpful tool because it:A.prevents lenders from charging higher interest rates in the future.B.rewards people for saving a percentage of their earnings.C.ensures that people do not overspend or exceed their ability to pay.D.allows people to borrow money that can be paid back later.SUBMITarrow_backPREVIOUS
Why is credit an important part of the economy?A.It allows people and businesses to pay off expensive purchases over time.B.It helps workers find higher-paying jobs that take advantage of their skills.C.It prevents banks from charging companies interest on long-term loans.D.It encourages businesses to sell products both domestically and internationally.
Select the aspect(s) below that are a benefit of a credit card use.You can select more than one answer.A.It allows buyers to postpone the actual payment of the goods and services, and without paying interest in some circumstances.B.It provides a free automatic loan for the sellers of the goods and services.C.It permits to activate the money in the term deposit account.D.It allows the buyers to acquire goods and services without using their transactional bank account
Which is NOT a positive reason for using a credit card to finance purchases?Paying it off on time can help build your credit historyYou will get charged high interest.You can get rewards and discounts.You can buy something you need now and pay for it after pay day.
What is an advantage of debit and bank credit cards over offering customers credit terms?Select answer from the options belowreceipt of cash is guaranteedthere are no fees associated with accepting bank credit cardsthere are no advantages to bank credit or debit cardsmore sales would be made if only credit terms were offeredSave for LaterSubmit Answer
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.