Personal Finance
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
