Econ PF Final

Front

How can one avoid paying interest on money borrowed on a credit card?

Back

Pay the amount used in full during the current billing cycle.

Front

What is credit?

Back

Borrowed money

Front

How is credit used? Options: Employers may check job applicants' credit., Before renting an apartment, the landlord will check the prospective tenant's credit., If you apply for a cell phone or credit card, your credit will be checked.

Back

All of these are correct, these are only some of the ways credit can be used.

Front

What actions can decrease your credit score? Pay your bills on time, Only check your credit score once a year, Max out your credit cards, Pay off your full debt at one time

Back

Max out your credit cards

Front

The gradual decrease in the value of an asset is called

Back

deprication

Front

A type of debt that is backed by something of value is called

Back

secured debt

Front

A car loan is an example of 

Back

installment loan

Front

When you lease a car, you are the 

Back

lessee

Front

Owing more on an asset than it is worth is called being

Back

underwater on the loan

Front

A loan obtained when you purchase a home and use the home as collateral is a(n)

Back

mortgage