eli5: What is the difference between Money and Credit??
In: Economics
Money is how much spendable stuff you have now.
Credit is how much money people are willing to lend you.
Almost always you have to pay back more money than you borrow.
Sometimes you can promise to give a person a valuable thing (like your house) if you don’t pay back the money you owe. Thus allowing you to get more credit than you have money.
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