Final answer:
The term for a formal, signed credit agreement between a lender and a borrower as referred to by the lender is a note receivable, which is an asset for the lender.
Step-by-step explanation:
The correct answer to the question is b. note receivable. A note receivable is a formal, signed credit agreement where the borrower promises to pay back the lender a certain amount of money at a future date. This promise to pay usually includes interest. In simplest terms, it is an asset to the lender, indicating that the lender expects to receive payment according to the terms of the note.
When businesses or individuals enter into these agreements, they are engaging in the process known as credit. Banks, as part of the financial capital market, often require various checks such as income verification and credit checks, possibly also requiring a cosigner or collateral to secure the loan. The lender's goal is to ensure that the borrower has the means and the credibility to repay the borrowed funds.