Personal Finance

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

property you possess that is worth more than your debts is called

Capital

A Pawnbroker is an illegal business where loans are made on to value of merchandise that serves as collateral

False

A line of credit is a pre-established amount that can be borrowed on demand, with collateral.

False

All credit cards have the same conditios and terms, so any card will fit your circumstances.

False

Credit unions charge higher rates of interest on loans than do banks or finance companies

False

Credit unions make loans available to both members and non-members.

False

Drug stores, clothing stores, and pawnshops are all examples of retail stores.

False

Finance Companies take less risk and charge lower interest rates than do credit unions.

False

Large retail stores typically do not allow customers to use bank credit cards as well as store credit

False

The most common source of cash loans is the finance companies.

False

You generally are able to add onto a closed-end account, as long as payments are current.

False

What is not an example of service credit?

Hairdresser services

An all purpose credit card, such as visa, mastercard, and discover, is an example of which type of credit?

Revolving Credit

A revolving crdit account is a type of open-ended credit.

True

Banks are more willing to give loans or credit to their regular customers.

True

Banks generally charge the maximum rates allowed by law for credit card balances

True

In the 1990s, overuse of credit cards resulted in record numbers of people declaring bankruptcy.

True

It is important to establish a good credit record now so that you can get credit later, as needed.

True

Many installment purchase agreements involve the signing of some form of contract before you take possession of the item being purchased.

True

Service credit is available to almost everyone and most often does not carry finance charges but allows budget plans when needed.

True

The Annual Percentage Rate (APR) is the cost of credit, expressed as a yearly percentage.

True

Used correctly, credit can greatly expand your purchasing potential and raise your standard of living.

True

Where no usury laws exist, finance companies charge as much interest rate as may be agreed upon.

True

the total amount that remains due on a loan

balance due

At which of the following will you probably get the lowest rate of interest for a consumer loan?

credit union

The interest or money that is charges a borrower for the use of credit is the

finance charge

the interest you pay for the use of credit

finance charge

small loan companies that charge high interest rates

finance companies

a pre-established amount that can be borrowed

line of credit

unlicensed lenders who charge illegal rates

loan sharks

the least amount you may pay under your credit agreement

minimum payment

Credit that can be used again and again as long as the balance owed does not exceed the limit is called...

open ended credit

legal businesses that give loans based on the value of merchandise held as collateral

pawnbrokers

the amount borrowed is known as the

principal

A very common source of cash loan is

private lenders

department stores and variety stores are examples of this type of credit source

retail stores

A loan for which the borrower pledges property to ensure repayment is a...

secured loan

a loan on which property is pledged to ensure repayment

secured loan

Laws that establish maximum interest rates.

usury laws


Ensembles d'études connexes

MIS - Final Exam - Quizzes and Test

View Set

ATI Engage Fundamentals: Vital Signs

View Set

CIT 15 Chapter 12 Technology in Action 16e Fresno City College Fall 2019

View Set

Fluid regulation, water, electrolytes

View Set

Comptia N10-007 Practice test Questions Part 2

View Set