Chapter 6 Consumer Credit Self-Assessment

The periodic charge for using credit is called?

• Financing

• Interest

• installment payment

• a credit limit

The greatest disadvantage of using credit cards is

• having a record of expenses

• being in physical danger

• proving to be a responsible spender

• Being tempted to overspend

You will probably find the least expensive loan from

• A commercial bank

• A finance company

• Family Members

• A home equity loan

The usual trade off of choosing small payments is

• having a short payment period

• Paying more in interest

• Having variable interest rate

• pledging collateral

No matter how often you make payments, interest is calculated on the full amount of the original principal with the

• Simple interest method

• Declining balance method

• add-on interest method

• Up front cash method

Which of the five Cs of credit does your income affect

• Capacity

• Character

• Collateral

• Credit History

Which law gives a borrower the right to stop payment

• Equal Credit Opportunity Act

• Fair Credit Reporting Act

• Fair Credit Billing Act

• Truth in lending Act

Under the Equal Credit Opportunity Act, you may sue a creditor if the creditor?

• Discriminates against you

• Fails to disclose information

• Gives inaccurate information

• Hires a collection agency

The legal process in which some or all of a debtor's assets are distributed among creditors because the debtor cannot pay his or her debts is called

• A debt collection

• Credit counseling

• Adjusted repayment

• Bankruptcy

Chapter 7 bankruptcy relieves an individual from debts arising from

• Alimony

• Credit card charges

• Child support

• Fraud