What term means an arrangement to receive cash now and pay later?

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Multiple Choice

What term means an arrangement to receive cash now and pay later?

Explanation:
Credit is the term for an arrangement to receive cash now and pay later. It lets you obtain money or goods today with a promise to repay in the future, usually with interest and under a set repayment schedule. This is the everyday mechanism behind loans, credit cards, and lines of credit. The other terms are about government or legal concepts (federal, ordinance) or the idea of a self-governing state (sovereign) and don’t describe a financing arrangement, so they don’t fit this concept.

Credit is the term for an arrangement to receive cash now and pay later. It lets you obtain money or goods today with a promise to repay in the future, usually with interest and under a set repayment schedule. This is the everyday mechanism behind loans, credit cards, and lines of credit. The other terms are about government or legal concepts (federal, ordinance) or the idea of a self-governing state (sovereign) and don’t describe a financing arrangement, so they don’t fit this concept.

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