Question

Which of the following is not a kind of consumer credit? a. installment credit b. personal loans c. service credit d. marginal credit Please select the best answer from the choices provided A B C D

Answer 1

Marginal credit is not a kind of consumer credit, unlike installment credit, personal loans, and service credit.

Step-by-step explanation:

In consumer credit, there are different types of credit arrangements that individuals can access to finance their purchases or expenses. However, out of the options provided, marginal credit is not a kind of consumer credit.

1. Installment credit: This refers to a type of credit where a buyer borrows money from a lender, usually a financial institution, to buy goods or services and repay the loan in installments over a set period. This could include purchasing a car or buying furniture.
2. Personal loans: These are loans that individuals borrow from a lender, such as a bank or credit union, for personal use. The borrowed funds can be used for various purposes, such as debt consolidation, home improvement, or medical expenses.
3. Service credit: Service credit refers to a form of credit obtained when a consumer receives services without immediate payment, usually with an agreement to pay later. Examples of service credit include utility bills or medical expenses where the service is provided before payment is due.
4. Marginal credit: This term does not refer to a type of consumer credit. It is not recognized as a standard category of credit.

Answer 2

c. service credit

Step-by-step explanation:

Service credit is credit for time served in a job, as it applies to retirement. This is not a kind of consumer credit.