The Economics of Money and Banking Chapter 3 Credit and Financial Instrument >>>What is Credit 1 from Latin credere,to believe Credit: Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in History and Types the future,generally with interest. nature of Credit The relationship of credit is that between creditors and debtors ▣ Credit is a special form of movement of value ▣ Credit is the behavior of borrowing and lending with the condition of repayment of principals with interest 3 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 3 GUO YING SEM TONGJI UNIVERSITY 1 What is Credit nature of Credit  The relationship of credit is that between creditors and debtors  Credit is a special form of movement of value  Credit is the behavior of borrowing and lending with the condition of repayment of principals with interest from Latin credere, to believe Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. Chapter 3 Credit and Financial Instrument Credit: History and Types