At the time of taking a loan, the borrower always looks for easy terms of credit. What does the phrase 'terms of credit' refer to?

(i) Principal amount
(ii) Rate of interest
(iii) Location of the bank

Only (i)

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Only (ii)

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Only (iii)

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Both (i) and (ii)

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Solution

The correct option is D Both (i) and (ii)
The principal amount and interest, along with the time period for which the loan is taken, make up the terms of credit. The location of the bank does not form a part of the terms of credit.

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At the time of taking a loan, the borrower always looks for easy terms of credit. What does the phrase 'terms of credit' refer to? (i) Principal amount (ii) Rate of interest (iii) Location of the bank

The correct option is D Both (i) and (ii)The principal amount and interest, along with the time period for which the loan is taken, make up the terms of credit. The location of the bank does not form a part of the terms of credit.

At the time of taking a loan, the borrower always looks for easy terms of credit. What does the phrase 'terms of credit' refer to?

(i) Principal amount
(ii) Rate of interest
(iii) Location of the bank

The correct option is D Both (i) and (ii)
The principal amount and interest, along with the time period for which the loan is taken, make up the terms of credit. The location of the bank does not form a part of the terms of credit.