Question

The term that stands for the money lent to an individual or an organization by a financial institution is _____.

• A. loan
• B. discount
• C. tax
• D. interest

Answer 1

The correct option is A loan

The money that is borrowed by a customer or business from a bank with or without interest is called a loan.

We get discount of items and trades for the benefit of buying items.

Tax is a compulsory contribution that the people have to make to their government.

Interest is the cost for borrowing money or the payment for lending money.