PF Ch 7 Credit Cards

Front

Credit is the most commonly used method of purchase in the United States.

Back

True

Front

Early in the history of the United States, credit consisted of a store account with a local retailer, and interest was rarely charged.

Back

True

Front

Today, Americans use credit mainly for emergency spending needs.

Back

False

Front

It is illegal to use one credit card to pay another credit card.

Back

False

Front

Payments on a credit account include both principal and interest.

Back

True

Front

Carrying a credit card is much more dangerous than carrying cash.

Back

False

Front

Having a credit card protects you from the risk of identity theft.

Back

False

Front

Finance companies take less risk than banks, so they tend to be more lenient with borrowers who are late making a payment.

Back

False

Front

The need for credit arose in the United States with the dawn of the

Back

Industrial Revolution.

Front

Which of the following transactions would likely be difficult to make without a credit card? purchasing a car, buying groceries, reserving a hotel room, buying a house

Back

reserving a hotel room