Determining Sources of Credit

What is institutional credit?

• A type of credit used to purchase land or houses
• A type of credit used to purchase small items
• A type of credit obtained from organizations in the business of loaning money
• A type of credit used to purchase a car

What is the purpose of short-term credit?

• To purchase small items
• To purchase a car
• To purchase land or houses
• To obtain a loan from an organization

What is the purpose of real estate financing?

• To purchase small items
• To purchase a car
• To purchase land or houses
• To obtain a loan from an organization

What is the purpose of installment plans?

• To allow the buyer to pay for the product in full
• To allow the buyer to own the product immediately
• To allow the buyer to make a down payment
• To allow the buyer to make regular payments while taking immediate possession of the good

What is a cosigner?

• A person who obtains a credit card
• A person who shares responsibility for the loan if the borrower is unable to pay
• A person who obtains a loan from an organization
• A person who purchases products from retailers using a charge account

What is collateral?

• The assets that are pledged to secure a loan
• The amount of money borrowed from an organization
• The interest charged on a loan
• The person who shares responsibility for the loan if the borrower is unable to pay

What is the purpose of a charge account?

• To make purchasing products more convenient for the consumer
• To obtain a loan from an organization
• To purchase a car
• To purchase land or houses

What is the purpose of a credit card application?

• To allow the cardholder to pay the full amount or a minimum monthly payment
• To allow the cardholder to continue using the account until the credit limit is reached
• To charge finance charges on the average daily balance
• To apply for a credit card

What is the purpose of a credit card?

• To make purchasing products more convenient for the consumer
• To obtain a loan from an organization
• To purchase land or houses
• To purchase a car

What is the usual time frame for real estate financing?

• Five to thirty years
• More than thirty years
• One to five years
• Less than one year