If you borrow money from a lending institution and agree to pay back the original amount plus the accrued interest, what does it signify?

A.

credit from the lending institution

B.

you are a creditor in the Lending institution's account

C.

the lending institution has debited its account

D.

your personal account shows cash outflow

E.

lending institution shows cash inflow

Option A.

Explanation:

Bank credit refers to the total amount of credit which is available to an individual or a business from a banking institution. It is the total amount of combined funds which financial institutions can provide to an individual or business.

A business or an individual's credit approval will depend on the following:

- borrower's credit rating,

- income,

- collateral,

- assets,

- pre-existing debt,

- total amount of credit available in the banking institution, etc.