Which term describes the borrower or the party that uses credit?

Which term describes the borrower or the party that uses credit?

• A. Credit
• B. Borrower
• C. Capital
• D. World Wide Web

Answer: (B)

In credit arrangements, the party who uses funds and is responsible for repayment is the borrower. The borrower receives the loan or credit line and agrees to repay it, usually with interest, under specified terms. This contrasts with the lender, who provides the funds. Credit describes the loan arrangement itself, not the person who borrows. Capital refers to money or assets used for investment or production, not the actor in the loan. The World Wide Web is unrelated to borrowing. So the term that best fits the description of the party that uses credit is the borrower.

In credit arrangements, the party who uses funds and is responsible for repayment is the borrower. The borrower receives the loan or credit line and agrees to repay it, usually with interest, under specified terms. This contrasts with the lender, who provides the funds.

Credit describes the loan arrangement itself, not the person who borrows. Capital refers to money or assets used for investment or production, not the actor in the loan. The World Wide Web is unrelated to borrowing. So the term that best fits the description of the party that uses credit is the borrower.