Question: Which Of The Following Is Not Required In Terms Of Credit?

Which of the following are terms of credit?

Terms of credit comprise interest rate, collateral and documentation requirement, and the mode of repayment.


The terms of credit vary substantially from one credit arrangement to another.

They may vary depending on the nature of the lender and the borrower..

What are the types of credit risk?

Types of Credit RiskCredit spread risk occurring due to volatility in the difference between investments’ interest rates and the risk free return rate.Default risk arising when the borrower is not able to make contractual payments.Downgrade risk resulting from the downgrades in the risk rating of an issuer.

What does credit means what are the terms of credit?

The terms which indicate when payment is due for sales made on account (or credit). For example, the credit terms might be 2/10, net 30. This means the amount is due in 30 days; however, if the amount is paid in 10 days a discount of 2% will be permitted.

What is formal and informal sources of credit?

Formal sources follow the sources of credit that are registered by the govt. and have to follow its rules and regulations whereas in informal sources include those small and scattered units which are largely outside the control of the government.

Which one is a formal source of credit?

Formal sector credit in India includes loans from banks and cooperatives. RBI supervises their functions of giving loans. Rich urban households depend largely on formal sources of credit. Lower rate of interest on loans is charged as compared to informal sources of credit.

What is loan and its type?

A loan is when you receive money from a friend, bank or financial institution in exchange for future repayment of the principal and interest. They can be unsecured, like a personal loan or cash advance loan, or they may be secured, like a mortgage or home equity line.

What is not included in terms of credit?

Terms of credit does not include options are interest rate , collateral , cheque , mode of repayment.

Which one of the following is not a formal source of credit?

Answer. Formal sources of credit are: Banks and Co-operative societies. Reserve bank of India will supervise the activities of the banks and co-operative societies in India. Employers do not fall under formal sources of credit lenders in our country.

What is meant by credit class 10?

The Credit refers to an agreement under which goods and services, or money is exchanged against a promise to pay later. … Another definition of Credit refers to the money given by banks to its customer and the later has to pay it on time. If he fails to pay the same on time, he will be charged by the bank.

Are employers formal sources of credit?

Answer. Answer: Formal sources of credit do not include employers as there is no role of these employers all these works are related to banks and the cooperatives. Employers are there merely to serve the bank staff and do the work as it is asked to do by their owner.

What is Globalisation class 10th?

Answer: Globalisation is defined as the integration between countries through foreign trade and foreign investments by multinational corporations (MNCs).

What is collateral class 10th?

Collateral (Security) is an asset that the borrower owns (such as land, building, vehicle, livestocks, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment.