Finance Chapter 5
Home equity loans
Have interest that is tax-deductible
A typical grace period offered by many credit card issuers is
20-25 days
Which of the following can result from a failure to repay a loan?
All of the above may result from the failure to repay a loan
Which of the following is a valid reason for using credit?
All of these are valid reasons for borrowing
When misused, credit can result in
All the choices are correct
Molly purchased a $1,500 dishwasher from Best Appliances. She will make 12 equal payments over the next year to pay for it. She is using
Are based on the original purchase price of a home*B) Have interest that is tax-deductibleC) Will cause you to lose your car if the loan is not repaidD) Require you to be a member of a credit unionE) Charge high interest rates ranging from 12 to 25% {just go with it}
Installment credit, in which the debt is repaid in equal installments over a specified period of time, exploded on the American scene with the advent of the
Automobile
Perhaps the greatest disadvantage of using credit is
The temptation to overspend
Many people expect
Their incomes to increase to make it easier to make payments on past credit purchases
Which of the following is NOT correct?
Using credit cards typically provides a "float" of up to 10 days