Intro to Business - Mod. Principles of Money & Financial Contrac

Which of the following is a closed line of credit to spend on consumer goods or intangible goods?

• a loan
• a checking account
• a security

Which of the following financial contracts involves risk?

• investment banking
• savings accounts
• checking accounts

Which of the following is an open line of credit to spend on consumer goods?

• a credit card
• a loan
• a checking account

Which of the following financial contracts represents a relationship between an employee and his or her employer?

• a payroll advance
• a checking account
• a loan

Annual Percentage Rate calculates which of the following?

• interest rate
• debt-to-income ratio
• periodic rate

Janet has an introductory APR for the first six months. After that her rate increases to a variable 13.99 percent. Janet purchased the card in January, how would you define her rate in October?

• variable
• fixed
• mixed

Creditors make the most money off which of the following types of tiered APR?

• cash advances
• balance transfers
• installments

Which of the following finance charge calculation methods is the least advantageous to the debtor?

• double balance
• adjusted balance
• average daily balance

Which of the following finance charge calculation methods is the least advantageous to the creditor?

• adjusted balance
• double balance
• average daily balance

Which of the following types of loans requires collateral in the event an individual is unable to reply the loan?

• a secured loan
• an unsecured loan
• a federal student loan