Intro to Business Unit 6 Review

Credit is based on the creditor’s confidence that the debtor can and will repay the debt.

• True

• False

Late or missed payments lower a borrower’s credit rating.

• True

• False

Corporations never put their financial situation on their Web site because they do not want their competitors or rivals to see it.

• True

• False

Budgeting is a continual process.

• True

• False

When corporations or governments need to borrow large amounts of money, they often issue bonds.

• True

• False

There are two types of bonds you can buy: federal government bonds and municipal bonds.

• True

• False

Stock prices change throughout every business day.

• True

• False

The return on an investment, or the amount of money the investment earns, is called the yield

• True

• False

A person who borrows money is called

• a creditor

• a lender

• a debtor

• economically disadvantaged.

The fee charged for borrowing money is called

• a credit index

• an IOU

• a percentage rate

• interest