Question

Which of the following is not included in terms of credit?

• A. Interest rate
• B. Collateral and documentation
• C. Mode of repayment
• D. History of the money lender

Hint:

Remember that the 'terms of credit' relate to the borrower’s obligations, not the lender’s background.

Answer 1

The Correct Option is D

Terms of credit usually include essential components like the interest rate, collateral, documentation, and mode of repayment. The lender’s personal history is not typically considered a formal term of the credit itself, hence option (4) is not included.