Immediate purchasing power that is exchanged for a promise to pay at a later date is called
A) collateral.
B) purchasing power.
C) trust creation.
D) money value.
E) credit.

Question

Quizplus · Accepted Answer

The immediate purchasing power that is exchanged for a promise to pay at a later date is called credit. This is because the buyer is obtaining goods or services on the understanding that they will pay for it later. Collateral refers to assets that are pledged as security for a loan. Purchasing power is the ability to acquire goods and services with money. Trust creation and money value are not relevant to the context of the question.

Immediate Purchasing Power That Is Exchanged for a Promise to Pay