FM 306 Activity

The word credit comes from the Latin word _________ which means “to trust.”

• credare

• credore

• credire

• credere

The _________, as a seller of goods or services on credit, has both the moral and legal right to demand of his _______ to pay the obligations when due.

• debtor - creditor

• creditor- debtor

• debtor - debtor

• creditor - creditor

Credit to creditor represents p_______r —the ability to obtain goods without inactual tender of payment.

Since the grant of credit by the creditor to the debtor is accompanied by a promise on the part of the latter to pay at a certain date, an o_________n arises which must be discharged as promised.

In b_________g credit is held refer to “an entry in the books of a bank showing its obligation to a customer,” that is, for the deposits made by the latter.

Likewise, the term credit may refer to a credit i_________________t , that is, a document which serves to evidence the existence of a business transaction anchored on trust.

In another sense, credit may be held synonymously with specific reference to the buyer’s credit s_____n____g that is, the ability to obtain goods and services, or even money against a promise to pay for them at a latter date.

The use of credit especially in the business world is so common that, by way of compliment, it is generally called as “ the l____ b_____ of business.”

Credit help expands the purchasing power of every member of the business community— from p________r to ultimate consumer.

Credit helps buying become more convenient for producers.

• True

• False