1 What is the definition of credit as explained in the video? 1 Credit is the ability to borrow money from someone else 2 Credit is the amount of money you have in your bank account 3. Credit is the interest rate charged on loans. 4. Credit is the total amount of money you earn annually.

##Step 1: Understanding Credit<br />###Credit refers to the ability to borrow money or access goods and services with the understanding that you will repay the borrowed amount later, often with interest. This aligns with option 1. Options 2, 3, and 4 describe other financial concepts like bank balances, interest rates, and annual income, respectively, but not credit itself.<br /><br />#