Types of Credit

Which of the following is an example of a single-purpose card?

• Diners Club

• MasterCard

• Kohl's Card

• VISA

A type of charge account that allows equal payment or installment of costly items.

• Revolving charge accounts

• Budget charge accounts

• Regular charge accounts

• All of the above

A loan that has a maturity of more than 1 year but less than 5 years.

• Short-tem

• Medium-term

• Long-term

Based on maturity matching principle, a laptop is better bought under which type of loan?

• long-term

• short-term

• medium-term

Based on maturity matching principle, grocery items are better bought under which type of loan?

• long-term

• short-term

• medium-term

Debit cards allows a customer to borrow money to purchase products and/or services.

• True

• False

A type of credit card that can be used at many stores.

• Multipurpose card

• Single-purpose card

• Travel and entertainment card

• Debit card

Which is true about maturity matching principle?

• It allows the debtor to wisely use the credit.

• It allows to minimize interest expenses for cheap items.

• It allows to long-term assets to be financed in longer duration.

• All of the above