Credit is a privilege granted by a creditor to a customer to defer the payment of a debt, to incur debt and defer its payment, or to purchase goods or services and defer payment. This module provides an introduction to the topic of credit. It explores the history of credit, the primary reasons credit is offered and presents an overview of the credit process. Additionally, the types of credit are defined and discussed. Lastly, the chapter provides an overview of the Federal Reserve System (Fed) and how it controls the U.S. economy.
After viewing this module, students should understand:
- The historical development of credit.
- The primary reasons to offer credit.
- The important elements of credit.
- The credit process and where credit fits into a business cycle.
- The different types of credit.
- The Federal Reserve System and its impact on the economy.
Toni Drake brings over 30 years of oil and gas credit experience to the table. Toni holds a CCE, NACM