U3 Credit

Question 1

consumer credit

Answer 1

• Consumers frequently use credit to buy homes, stocks, start businesses, purchase cars, entertainment systems, vacations, meals, movies, house renovations or appliances.
• used to pay off other debts

Question 2

government credit

Answer 2

• The Federal, Provincial and Municipal Governments used credit to finance: schools, roads, hospitals, airports, buses and subway lines.
• The money can come from banks, but often it comes from people who purchase Canada Savings Bonds or Treasury Bills (T-Bills).

Question 3

Business Credit

Answer 3

• Businesses may use short-term credit to pay for stock, raw materials and supplies.
• Businesses often use long-term credit or purchase land, buildings, machinery and office equipment.
• Without access to credit, many Canadian businesses would not exist.