Introduction to Credit

Front

Fill in the blanks. Credit is the ability to acquire money, goods, or services from others without ______ payment.

Back

immediate

Front

Fill in the blanks. Credit is an ______ to repay the purchase price and whatever interest is incurred.

Back

agreement

Front

Fill in the blanks. Credit is a privilege and a convenience and is ______.

Back

risky

Front

Credit allows for purchases without ______.

Back

cash

Front

Fill in the blanks. Lenders typically charge ______ and/or fees in addition to the original amount.

Back

interest

Front

Fill in the blanks. Credit is not always available to ______.

Back

everyone

Front

Fill in the blanks. Credit agreements are ______ binding contracts.

Back

legally

Front

Fill in the blanks. Credit agreements outline terms and conditions including credit limits, ______, annual percentage rate, and penalties.

Back

fees

Front

Short-term loans are often used for ______ expenses.

Back

short-term

Front

Intermediate-term loans are used to finance depreciable assets such as ______ and furniture.

Back

equipment