Banking & Finance- Ch 26 Quiz

The ____ (APR) determines the cost of credit on a yearly basis.

• Annual percentage rate

• Annual percentage ratio

• average percentage rate

• average percentage ratio

A ____ advance is a loan given in cash by a credit card company in anticipation of the borrower’s being able to repay it

• cash

• payday

• quick

• trust

A ____ is someone who agrees to be responsible for a debt if the main applicant does not repay it

• co-op

• co-payer

• concerige

• cosigner

A fee that is charged when a credit card payment is after the due date is called a(n)

• interest charge

• late-payment fee

• no-grace fee

• slow-pay charge

The loan applicant’s ability to repay a loan is called

• capacity

• capital

• cash on hand

• collateral

Proof of a loan applicant’s trustworthiness to repay debts is called

• cash on hand

• character

• competence

• correctness

The amount of money the applicant has beyond his or her debts is called

• capacity

• capital

• cash on hand

• credit

If a person pays his or her bills on time, most creditors will raise the person’s

• annual fee

• credit limit

• interest rate

• minimum payment

The minimum payment is the amount a credit cardholder

• actually pays each month

• can afford pay

• has a legal obligation to pay

• plans to pay

The maximum amount a credit card holder can charge on a credit card is called the

• ceiling

• credit limit

• high point

• max out