Borrowing Flashcards
1
Q
Overdraft
A
A bank allows a business to overspend on Ita current account to an agreed limit
2
Q
Personal loan
A
Means money that is borrowed by a financial institution, usually for a specific purpose
3
Q
Hire purchase
A
Paying to use an asset in instalments to spread the cost, the asset will remain property of the seller until the final payment is made
4
Q
Mortgage
A
A long term loan, usually to buy a house. It is secured by an asset and may set over a 25 year period
5
Q
Credit card
A
It’s a dork or borrowing, you ate issues a credit card by a financial provider with a credit limit. This money is not yours, Its borrowed money from the bank.
