The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

• A. Predatory lenders
• B. Credit
• C. Installment credit
• D. Revolving credit

Answer: (B)

Credit is the ability to obtain goods or services now with the understanding that you will pay for them later. It relies on trust that the buyer will pay in the future and on the lender or seller assessing the borrower’s ability and willingness to repay. This arrangement expands what you can purchase today and typically involves interest or fees as compensation for lending.

Predatory lending refers to unethical, high-cost terms rather than the general idea of buying now and paying later. Installment credit is a type of credit where repayments are made in fixed portions over time, and revolving credit is a flexible line of credit you can borrow from repeatedly up to a limit. Both are forms of credit, but the scenario described matches credit in its broader sense.