3.1 Introduction to Consumer Credit - practice A

What is the term used for a person who uses credit?

• Creditor

• Debtor

• Borrower

• Lender

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.9-10.5

What is the best way to start a good credit history?

• Get a credit card

• Open a savings account

• Take out a loan

• Pay bills on time

What is the most popular credit score used by creditors?

• FICO score

• Credit report card

• Credit score

• Credit rating

What is the main disadvantage of using credit?

• Interest charges

• Convenient for shopping

• No need to carry cash

• Easy to overspend

What is the fee charged for an installment plan?

• Monthly payment

• Interest charge

• Down payment

• Finance charge

Tags

CCSS.7.RP.A.3

What is the main factor that affects the interest rate a creditor charges?

• Credit score

• Income level

• Age

• Gender

What is the total cost of the guitar if Heather buys it on an installment plan?

• $2,240

• $2,466

• $2,559.62

• $2,130

Tags

CCSS.6.RP.A.3D

What is the finance charge for Cecilia's purchase if she paid a week late?

• $226

• $237

• $226.50

• $237.62

Tags

CCSS.7.RP.A.3

What is the sum of the monthly payments for Anita's layaway plan?

• $2,166

• $2,000

• $120.85

• $2,045.15

Tags

CCSS.6.NS.B.3

What is the difference between the layaway plan and the deferred payment plan?

• Immediate possession

• Monthly payment

• Interest charge

• Down payment