U2 P5 Introduction to Consumer Credit 2025

________allows you to purchase something right now that you are unable to pay for upfront. You have to borrow money from a lender and pay it back

• Credit
• interest 
• principle 
• capital 

A number that represents the risk a financial institution will take in loaning a person money 

• credit card
• credit report
• credit score
• credit counsel

Bureaus consider the number of credit accounts, outstanding debt, collections accounts, and bill paying habits to create your score.

• True
• False

Whether you will be approved for credit, and how much credit will be awarded is determine by your credit reports.

• True
• False

Paying your bills on time will not help your credit score.

• True
• False

 Credit allows you to?

• Purchase an item right now and pay for it right now
• Pay for an item right now, but receive it later.
• Purchase an item right now and pay for it later. 
• Receive an item right now and never pay for it

 What is a credit score?

• A number that represents how much money a borrower owes
• A score from a test given to borrowers by lenders.
• A number that represents the risk a lender takes on a borrower
• An average of all of a borrower's credit accounts

If you want to buy a house that cost $800,000 and the bank requires a down payment of 20%, what is the down payment?

• $640,000
• $160,000
• $300,000
• $80,000

Tags

CCSS.6.RP.A.3C

Joe wants to purchase an electric keyboard. The price of the keyboard at Macelli’s, with tax, is $2,744. He can save $175 per month. How long will it take him to save for the keyboard?

• about 10 months
• about 16 months
• about 20 months
• about 14 months

Tara purchases a professional racing bicycle that sells for $5,400, including tax. It requires a $200 down payment. The remainder, plus a finance charge, is paid back monthly over the next 2.5 years. The monthly payment is $215.75. What is the finance charge?The finance charge would be?

• $1,272.50
• $8,265
• $200
• $1,550.50