personal finance credit unit test answers BG

which of the following is a type of closed end credit

Installment loan

which of the following is not one of the national credit reporting agencies

National Credit Union Administration

A consumer should check out his or her credit rating periodically to

be sure the information on file is correct

which of the following is most likely to be an impulse purchase

candy bar

which of the 5 c's of credit require that a persons assets exceed their liabilities

capital

allows consumers to make purchases or borrow money on a time-payment plan

closed ended credit

form of security to help guarantee that a creditor will be repaid

collateral

an agreement to be responsible for loan payments if another person fails to make them

cosigning

an arrangement that allows a consumers to buy goods or services and pay for them later

credit

A loan that must be repaid with finance charges by a certain date

credit card

An example of open-end credit is

credit card

Record of a persons credit history and financial behavior

credit rating

and entity (bank, finance company, credit union, business, or individual) to which....

creditor

which of the following is not an advantage of using credit

ease of spending money you do not have

the total dollar amount you pay to use credit

finance charge

Time period during which no finance charges are added to a credit card account

grace period

You can damage a good credit rating by

ignoring bills you cannot pay until the creditors take collection action

as the percentage rate of interest on a credit transaction increases, the finance charges

increase

The income a person receives

net income

One way to minimize the cost of credit is to

pay cash for small purchases

if you go over your credit limit or make your payment late, you will likely be charged a

penalty fee

Credit is available most readily to

people with a good credit rating

The amount you pay to use credit depends on all of the following factors except

reason for using credit

A loan that requires collateral

secured loan

if your credit card is lost or stolen

you are responsible for only $50 in charges per card

all of the following are danger signs that you are overextending your credit (using your credit irresponsibly) except

your credit rating is rising

The cost of credit on a yearly basis, expressed as a percentage

Annual Percentage Rate

Credit cards that allow consumers to use credit at many places can be obtained through

Banks, credit unions, and credit card issuers

The maximum amount of money a creditor will allow a credit user to borrow

Credit limit

when comparing credit terms, it is important to consider

all of the above

a credit bereau is required to follow reasonable procedures to make sure that

the info in a persons file is correct