Question

Which statement best describes the role of a credit agency?

A. It tracks the use of credit for lenders.

B. It predicts future earning potential for lenders.

C. It teaches how to make smart financial decisions.

D. It shows how saving money makes financial sense.

Answer 1

Answer: It tracks the use of credit for lenders

Explanation: Credit agencies, also known as credit rating agencies, help potential lenders and creditors determine whether to lend or extend credit to an individual or business, by predicting the likelihood that the borrower will repay the debt in a timely manner.