Economics Credit and Debt

When an asset loses value over time, that's:

• Depreciation

• Discounting

• Devolution

• Devaluing

The amount of time you have to pay back a loan is called the ______ of the loan.

• Term

• Time

• Window

• Lien

A ________________ is a number that indicates the likelihood of someone repaying debt.

• Credit Score

• Credit Index

• Credit Term

• Credit Slope

Something used as security for a debt is called:

• Collateral
• Deposit
• Guarantee
• Warranty

When an item is worth less than what you owe on it, you have:

• Negative Equity

• Negative Value

• Negative Credit

• Negative Assets

Kind of credit that is repaid with fixed monthly payments:

• Revolving

• Installment

• Fixed

• Negative

Kind of credit that is paid monthly but has varying amounts due based on amount owed:

• Installment

• Revolving

• Monthly

• Variable

Which of the following is NOT a credit incentive?

• 0% Interest

• 1.5% Cash Back

• 10% Discount

• 0 Payments for 6 months

The top four credit card companies spend $4 Billion/year on ___________.

• Expenses

• Marketing

• Default

• Fees

Consumer credit is a:

• Product

• Security

• Service

• Benefit