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of repayment together comprise what is called the terms of credit.
4 Q-How does credit play a vital and positive role in running the 5 45
business? Explain with an example.
(i) Credit refers to an agreement in which the lender
supplies the borrower with money goods or services in
return for the promise of the payment in future.
(ii) For a business man credit facility is the backbone of his
business.
(iii) Whenever we need money to run our business we
approach our bank to help us.
(iv) Bank loans are given by bank at a reasonable rate of
interest which is much lower than the private loan.
(v) Bank loans can be returned in installments where as
private credit giving agencies rarely give such facility
especially in villages.
Credit helps the business to expand his business or to even to start it.
or Any other points.
5 List the various sources of credit in Sonpur. 3 47
Ans. * Money lender TB
 Trader
 Bank
 Employer