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
