EPF Ch 15 Review

Credit is...

• goods & services are received in exchange for pay in future

• goods & services are received in exchange for pay now

• person who receives money

The person or organization who has the resources to provide an individual with a loan

• lender

• borrower

• credit report

The person or organization who receives money from the lender

• lender

• borrower

• credit limit

When you borrow money, the interest is...

• ability to pay loan back

• maximum dollar amount that can be charged

• loan amount

• the charge for borrowing money the charge for borrowing money

The ability to pay the money back...

• closed end credit

• open end credit

• creditworthiness

Paying loan back in specific number of equal payments

• closed end credit

• open end credit

• interest

Revolving credit / extended as a line of credit to avoid future application

• closed end credit

• open end credit

• creditworthiness

A credit limit allows you to...

• buy as much as you want

• buy within a given limit

• buy only necessities

Your credit card's APR is the...

• Annual Partitioning Risk

• Annual Percentage Risk

• Annual Percentage Rate

The APR is the...

• amount borrowed

• cost of borrowing money cost of borrowing money

• down payment