Chapter 7 Flashcard (NEW)

Front

What is the name of the decision-making process that we use to be responsible shoppers?

Back

Systematic Decision-Making

Front

Failing to live up to your financial obligations to meet your goals and need is called...

Back

Financial Irresponsibility

Front

Which is the first step of the buying plan?

Back

Define you spending goal

Front

The ability to borrow money and pay it back later is called...

Back

Credit

Front

Which of the following is NOT a benefit of credit? Increased Purchasing Power, Security, Finance Charge, Convenience

Back

Finance Charge

Front

Which of the following is NOT a disadvantage of credit?
Reduction of future buying power,
Overspending,
Identity Theft

Back

Leverage

Front

Finance charges are defined as...

Back

Interest and Fees

Front

Which of the following interest methods benefit the consumer? Adjusted Balance Method, Previous Balance Method, Average Daily Balance Method

Back

Adjusted Balance Method

Front

Which of the following methods benefit the bank? Adjusted Balance Method, Previous Balance Method, Average Daily Balance Method

Back

Previous Balance Method

Front

Finance charges increase the overall cost of goods and services purchased with a credit card.

Back

True