Credit Quiz-Management

A disadvantage of using credit is impulse buying

• True

• False

Capital refers to a person’s assets.

• True

• False

What is principal?

• The fee that is paid to borrow money

• The rate lenders charge borrowers for money.

• The non-interest portion of a loan.

• The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.

Paying your bills on time is a characteristic of:

• capital

• character

• capacity

Having a steady job is an example of:

• character

• capacity

• capital

Installment credit usually allows a person to make additional purchases on an account.

• True

• False

A common advantage of using credit is:

• less impulse buying

• lower cost for items purchased

• lower chance of overspending

• ability to obtain needed items now

APR is the _______ rate charged by a credit card.

• Interest

• Collateral

• Assets

• Credit Report

Character answers which of the following question?

• will you repay the debt?

• what if you don’t repay the debt?

• can you repay the debt?

Paying for a jacket with a credit card is considered what type of credit?

• installment

• revolving

• single-payment