Personal Finance Chapter 7

Impulse buying often leaves the buyer feeling dissatisfied and wishing he or she had chosen more wisely.

• True
• False

A lender may require a borrower to provide collateral for a loan.

• True
• False

A fee charged for violating an agreement such as a credit agreement is called a rebate.

• True
• False

If you pay the full amount owed on your credit card each month, you can avoid paying interest on an outstanding balance.

• True
• False

Use of electricity, water, and other utilities that you will pay for later is an example of this type of revolving credit.

• True
• False

Comparison shopping is the stage of a buying plan in which you evaluate your wants and needs.

• True
• False

An interest rate that remains the same each month is a variable rate.

• True
• False

A preapproved amount that can be borrowed is a line of credit.

• True
• False

Bank credit cards are a form of installment credit.

• True
• False

Many merchants encourage their customers to use store credit.

• True
• False