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SAI International School
                                                 Session- 2025-2026

                                                     Lesson notes
                                     Subject- Economics Ch- 3- MONEY AND CREDIT







                     Interest rate, collateral and documentation requirement and the mode of repayment
                       together comprise what is called the terms of credit.

                     Collateral is an asset that the borrower owns (such as land, building, vehicle, live
                       stocks, deposits with banks) and uses this as a guarantee to a lender until the loan is
                       repaid.
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