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ods and services that implies some form of consumer credit (meaning the credit extended is for eventual consumption) by the borrower and the lender expects to be repaid either in money or in kind later on.
Credit had been used since immemorial times back to Biblical periods or even extending back to antiquity as shown by the Hammurabi Code of ancient Babylon in which there was the provision for punishment for people who do not pay their debts or try to escape their financial responsibility by absconding or running away. The purpose of credit had always been the same; it is used to facilitate the exchange of goods and services long before modern economics came into being as a distinct academic discipline and as a legitimate profession itself.
The Hammurabi Code consisted of about 282 laws with approximately half of these laws dealing with commercial contracts in which there is a graded punishment for contract violators. In modern free-market capitalist economies today, the sanctity of contracts is always upheld to help promote trade and commerce by creating conditions of trust in which parties to a transaction are assured of payment and other stipulations by which to ensure compliance by the other party. The loosening of strict credit standards can lead to serious, unforeseen, and dire consequences for an entire economy because it causes higher credit default rates as borrowers cannot pay.
Credit is used in perhaps ninety percent of all commercial transactions compared to the use of cash. This is because cash can be limited at times which can hinder the completion of any contemplated transaction; credit provides the necessary link for the transaction to push through despite the absence or lack of sufficient cash on the part of the buyer. If the seller is willing to be trusting or take a risk as to the trustworthiness of a buyer, then credit is extended. People trusted other people to honor financial obligations in such ways as a mere handshake to seal a deal.
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The concept of credit risk can be simply described as an investor’s risk of loss due to a borrower’s failure to make payments as promised. Such an event of loss is termed as default. According to the Basle Committee, the international banking supervisory body, inadequate credit risk management continues to be the most threatening issue in the modern banking industry.
Introduction a. General preview of sales on credit II. Forms of Sales on Credit a. Accounts Receivable b. Bad Debts c. Notes Payable d. General-Purpose Credit Cards III. Conclusion Introduction In most cases, firms allow for a substantial portion of their sales based on credit terms as compared to those with immediate cash payment.
At the same time misuse of technology resulted in credit card forgery like cyber crimes which created doubts in the minds of the public about the reliability of using credit cards.
Biometrics provides the answers to all types of credit card forgery. The individual characteristics, which are unique from person to person has been made use in biometric technology.
You should very carefully go over your financial statements such as bank statements and credit cards bills and do so frequently. The faster you find out that your credit or your identity has been tampered with, the faster and
The IEEE has created working groups designed to address the different types of networks in the world. One of those active workgroups is the 802.20. The mobile Broadband wireless access has been created in response to the increasing use of mobile
The information contained in the treasury auction announcement includes the amount of security that is to be offered, the date of auction and the date of issue, as well as the maturity date of the securities that are to be issued, and the
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