Leadershi Ch25

An agreement to obtain money, goods, or services now in exchange for a promise to pay in the future

• Commercial credit
• Consumer credit
• Credit
• Creditor

Lends money or provides credit

• Credit
• Creditor
• Consumer credit
• Commercial credit

Borrows money or uses credit

• Debtor
• Creditor
• Consumer credit
• Commercial credit

The type of credit used by people for personal reasons

• Credit rating
• Creditor
• Debtor
• Consumer credit

Credit used by business

• Interest
• Credit rating
• Consumer credit
• Commercial credit

A measure of a person's ability and willingness to pay debts on time

• Interest
• Consumer credit
• Credit rating
• Collateral

A credit proved by a store or company for customers to buy its products

• Commercial credit
• Installment loans
• Collateral
• Charge accounts

Loans repaid in regular payments over a period of time

• Collateral
• Interest
• Warranty
• Installment loans

Collateral is something of value the bank can take if a borrower does not make the required loan payments

• True
• False

The fee charged by creditors for using their money

• Collateral
• Interest
• Fixed rate
• Down payment