Consumer Credit Quiz One

Which verse tells us "the borrower is a servant to the lender"?

• Proverbs 22:7

• Romans 13:8

• Deuteronomy 15:6

Which verse tells us "thou shalt not borrow"?

• Proverbs 22:7

• Romans 13:8

• Deuteronomy 15:6

Which verse tells us we should "owe no man for anything".

• Proverbs 22:7

• Romans 13:8

• Deuteronomy 15:6

Check all that apply to "90 days same as cash"

• some believe it can be a form of stewardship

• it is a way to make a large purchase without paying interest

• it is a form of investment borrowing

• it assumes on an uncertain future

(a)   transactions are those that you expect to make and pay on a regular basis.

You are overextended if your credit payments are more than (a)   % of your take home pay.

Any unexpected expense or an emergency expense is known as a (a)   .

Check all that apply: Both investment borrowing and consumption borrowing:

• require the borrower to pay back more than they borrowed in most cases

• depend on your future income

• allow the borrower to use money to make money

The three C's of credit include:

• caution

• careful

• contingency

• consider

Which would be purchased by consumption borrowing?

• land

• new swimming pool

• 4 shirts, two pairs of shoes and 7 new dresses

• new tires for your car