What is credit? what are it's characteristic?

1.	What is credit? what are it's characteristic?
Answer» Explanation: Credit is the trust which allows one party to PROVIDE MONEY or resources to another party wherein the second party does not REIMBURSE the first party immediately, but promises either to repay or return those resources at a later date. The system weighs five CHARACTERISTICS of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five Cs of credit are character, capacity, CAPITAL, collateral, and conditions.

Answer»

Explanation:

Credit is the trust which allows one party to PROVIDE MONEY or resources to another party wherein the second party does not REIMBURSE the first party immediately, but promises either to repay or return those resources at a later date.

The system weighs five CHARACTERISTICS of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five Cs of credit are character, capacity, CAPITAL, collateral, and conditions.

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