Credit and Loan

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

• Loan
• Credit

A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

• Loan
• Credit

Another word for credit is a loan

• TRUE
• FALSE

Which of the following are people and places that lend credit

• Banks and Credit Unions
• Pawn Shops
• Furniture Stores
• All of the Above

Which of the following is an advantage of credit

• No need for cash
• Interest
• Responsible if lost
• All of the Above

Open-End Credit has no set pay off day

• True
• False

Closed-end credit has no set pay off date

• True
• False

Which is an example of Open-End Credit

• Credit Card
• Retail Card
• Cell Phone Bill
• All of the Above

Automobile Loan, Mortgage, and Student Loans are examples of Closed-End Credit

• True
• False

A loan in which the borrower pledges some asset

• Unsecured Loan
• Secure Loan