What is the privilege of buying now with the agreement to pay for it later, or borrowing money with the promise to pay it back?

• A. Credit
• B. Capital
• C. Balance Due
• D. World Wide Web

Answer: (A)

Credit is the ability to obtain goods or money now and promise to pay for them later, often with interest and a repayment plan. This idea describes buying now and paying back later or borrowing with a promise to repay, which is exactly what credit involves. Capital refers to assets or funds used to operate or grow a business, not the act of deferring payment. A balance due is simply the amount still owed at a given time, a result of using credit rather than the concept itself. The World Wide Web is unrelated to financing purchases.