Personal Finance L2

DEFINE credit.

• Any form of deferred payment.

• The loaning of assets.

• A score that measures your trustworthiness.

• The promise to spend borrowed money.

DEFINE interest.

• A late fee applied to borrowed money.

• The promise to repay a debt.

• The additional cost to borrowing money.

• A measure of monetary strength.

An entity that charges borrowers interest rates above the legal limit is called a...

(a)  

Roughly ___% of Americans own at least one credit card.

• 95%

• 83%

• 67%

• 51%

The ​ (a)   motivated banks to get into the credit business because it made credit ​ (b)  

• New Deal
• Profitable
• Affordable Care Act
• 2008 Housing Crisis
• Unprofitable

Match the following

• Made loans for farmers to refinance their farms.

• Federal Deposit Insurance Corp (FDIC)

• Insures loans for home building and home buying.

• Electric Home and Farm Authority. (EHFA)

• Refinances mortgages in risk of default.

• Home Owner's Loan Corp. (HOLC)

• Insures deposits up to $250,000.

• Federal Housing Administration. (FHA)

Because of ​ (a)   after WWII, using credit to buy things became more socially ​ (b)  

• increased consumption
• acceptable
• decreased consumption
• unacceptable
• indifferent

Since the 1950s, credit usage has consistently...

(a)  

Since the 1950s, household debt has...

(a)  

As of right now, the majority of debt for an American under 35 years old comes from...

• Student Loans

• Credit Cards

• Mortgages

• Auto Loans