Night MM Final

The rate at which interest is charged on a credit account and is the cost of credit expressed as a yearly rate is called:

• Interest Rate

• Annual Percentage Rate

• Credit

In this type of loan, the borrower repays a specified number of equal payments:

• Installment

• Revolving

• Consumer

When dealing with your credit card balance, what percentage should you stay under on your credit line?

• 20%

• 30%

• 50%

Your financial ability to meet credit obligations is called:

• Character

• Capacity

• Capital

The type of bankruptcy that allows a consumer to remove all of their debts is called:

• Chapter 7

• Chapter 11

• Chapter 13

An interest rate that can change during the course of the loan and is based on the prime or index rate is called:

• Variable Rate

• Fixed Rate

• Prime Rate

This type of debt is tied to a specific asset that can be used as collateral and repossessed if the borrower doesn't make payments:

• Unsecured

• Secured

• Consumer

Your assets and net worth are called:

• Conditions

• Character

• Capital

In this type of loan, the borrower repays a specified number of equal payments:

• Installment

• Revolving

• Consumer

General economic conditions that affect your ability to repay a loan is called:

• Collateral

• Character

• Conditions