Question

Identify the situations that do not involve credit.

• A. Manish avails an education loan.
• B. Maria avails a scholarship.
• C. Kiran is gifted a popcorn maker.
• D. Sagar buys a mobile phone on instalment.

Answer 1

Answer: (B), (C)

Kiran is gifted a popcorn maker.

A loan or credit refers to an agreement in which the lender supplies the borrower with money, goods, or services in return for the promise of future payment.

Manish borrowing money for higher studies and Sagar buying a mobile phone on instalment are instances of credit. However, Kiran and Maria do not have any compulsion to repay.