Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
FMV or fair market value is the price that any asset would get or sell for in the open market. This indicates the price of any asset as per the regular terms and conditions mentioned previously, i.e. buyers and sellers acting on their own will without any pressure, being informed or aware, and have taken a reasonable duration for the completion of the transaction in question. Fair market value is not the same as the appraised value and the market value. Insurance companies often use this value for working out payouts for claims at times.
This is the price that a property will normally get if it is sold in the open market. There is no fixed calculation mechanism or formula in this regard. The technique is usually dependent upon examining selling prices of similar properties in a particular locality.
