Ch 25 Quiz Review

The one who lends the money is the

• creditor

• debtor

Which of the following IS the amount of interest based you get charged based on?

• length of loan

• your salary

• your parents salary

• how many debit cards you have

College students (ages 18-21) fit into the largest age group of people with credit problems

• True

• False

What is the fee that creditors charge for using their money called?

• Cash

• Interest

• Payment

Which type of loan does the book strongly recommend against using?

How long does a medium term loan last for?

• 0-3 years

• 1-5 years

• 5-10 years

While installment loans are made during a period of time, which loans are made for a longer period such as 15-30 years?

• Single Payment

• Pay day

• Mortgage

The cost of a loan from a consumer finance company is higher than the cost of a loan from other sources since this loan involves a greater risk.

• True

• False

Why might be a good reason to use credit?

• For emergencies

• So you do not have to have cash on hand

• Can buy larger products you do not have enough cash for

• All of the above

Governments (federal, state and local) issue credit, they do not use credit.

• true

• false