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alukav5142 [94]
2 years ago
8

Why is credit an important part of the economy?

Business
2 answers:
Vinil7 [7]2 years ago
4 0

Answer:

A. It allows people and businesses to pay off expensive purchases

over time.

Explanation:

A credit facility is an arrangement where a buyer obtains goods or services and pays for them over a long time. Credit contrasts cash payment, where the buyer pays make full payment for a product when acquiring it.

Credit allows a business to acquire expensive items and assets. Should a business be in need of something that it cannot afford to pay on a cash basis, it can negotiate favorable credit terms with the seller.  Payments for such an item are spread over an agreed period. The buyer pays through small and affordable installments until they clear the debt.

mote1985 [20]2 years ago
4 0

Answer: the correct answer is a

Explanation:

A P E X

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