Consumer Credit

Non-revolving consumer credit is a kind of credit that allows the consumer to draw credit for a particular amount.

• True

• False

Non-instalment credit requires the consumer to repay the full amount of the loan in a lump sum.

• True

• Dalse

A credit card is non-revolving credit which allows the consumer to make purchases on credit.

• True

• False

The credit rating represents the ability of an individual to earn money by using a rating.

• True

• False

A person who has a good personal credit record is generally charged a lower interest rate when he applies for a loan.

• True

• False

Tags

CCSS.7.RP.A.3

Which of the following is not a classification of consumer credit?(1) Revolving consumer credit

(2) Fixed consumer credit

(3) Instalment credit

• (1) only

• (2) only

• (3) only

• (1) and (2) only

Which of the following is non-revolving credit?

• Car loans

• Credit cards

• Overdraft facilities on current account

• None of the above

Which of the following affects the amount of credit available?(1) Repayment amount

(2) Credit limit

(3) Outstanding amount

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following are instalment loans?

• Tax loans

• Mortgage lans

• Car loans

• All of the above

Which of the following would affect a good credit record?

• Avoid late payments

• Maintain a good habit of financial discipline

• Avoid impulse purchases

• Apply for more credit cards