While credit is all or part of an amount a borrower may use, debt is
No.
You may want to check the definition of debt.
Is it A, Ms. Sue??
Yes, A.
the overall amount of money that a borrower owes to a lender or to multiple lenders. In other words, credit refers to the amount of money that is available to a borrower for them to use, while debt refers to the actual amount of money that has been borrowed and needs to be repaid.
To understand the difference between credit and debt, let's break down the two terms:
1. Credit: Credit is a financial concept that allows individuals or businesses to borrow money or access funds for various purposes. The amount of credit offered to a borrower is typically based on their creditworthiness, which is evaluated by factors such as their income, credit history, and repayment capacity. Credit can be in the form of credit cards, lines of credit, or loans. When a borrower uses credit, they are essentially using someone else's money, with the understanding that they will need to repay it in the future.
2. Debt: Debt, on the other hand, refers to the actual amount of money that has been borrowed and is owed to a lender. When a borrower takes on debt, they are assuming a financial obligation to repay the borrowed funds, usually with additional interest or fees over a specific period of time. Debt can come in various forms, such as mortgages, personal loans, student loans, or credit card balances. The total amount of debt that a borrower has accumulated represents their overall financial liability.
In summary, credit is the available amount of money that can be borrowed, while debt is the actual amount of money owed. Borrowers utilize credit to accumulate debt, and the debt needs to be repaid according to the terms and conditions agreed upon with the lender.
the amount of credit that is used.
repaid before credit is extended.
the unused portion of credit.
added to the credit amount.
These are the choices. I think it is C.