knowledge
Interest is a price paid for using others’ money.
application
Explain why you need to repay more than 100 yuan in the future if you borrow this amount of money to buy a new smartphone.
knowledge
Because of credit, people can get things at present, and promise to repay their prices with interest gradually or at once.
application
Identify the goods and services often bought by loan.
knowledge
Buying durable goods such as cars and estates on credit allows people to use them when repaying their value.
application
Explain why people usually don't wait until they have enough cash to buy a car.
knowledge
Borrowers who repay their loans on time can receive credit support in the future. But if the borrower continues to borrow without repaying, they will be required to pay higher interest.
application
Explain why students are likely to be unwilling to lend their money for lunch to those who didn’t pay off their debt. Explain why banks require people with previous reimbursement issues to pay higher interest or even refuse to lend money to them.