Economics Chapter 4 Test Review D

Why should you avoid lending money?

The relationship changes, often the relationship ends completely, and the person borrowing money is in bondage to you.

How is a debit card like a credit card?

They both can have the Visa or MasterCard logo, and a debit card can be swiped and require a signature like a credit card.

Which is true about the myth "I will take out a 30-year mortgage and pay it off early"?

Other important things come up and it usually does not get paid off early.

Baby Step 2 is:

Pay off all debt using the debt snowball.

What concept likely had an impact on McDonald's when they beghan accepting credit cards?

People use 12-18% more using plastic, so the average price of the order increased, and people found it more convenient to pay with a credit card.

Which of the following is not a myth/

78% of Americans do not pay off their credit card balance every month.

The main difference between debit and credit cards is:

A debit card requires you to have the cash available in the account; a credit card does not.

What can you conclude about the history of credit timeline?

Credit has evolved into a way of life over a relatively short period of time.

Which is a danger of a co-signing a loan?

If the person doesn't pay, you become responsible for the debt.

The most expensive way to purchase a new car is:

Leasing