Which of the following is NOT an example of a financial institution?

• A credit union

• An investment banking center

• A realtor

• A mortgage company

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

• A credit card

Which of the following financial contracts involves risk?

• Checking accounts

• Payroll advances

• Investment banking

• Savings accounts

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

• A loan

• A checking account

• A security

• A credit card

Which of the following financial contracts represents a relationship between an

employee and his or her employer?

• A checking account

• A payroll advance

• A loan

• A credit card

Annual Percentage Rate calculates which of the following?

• Debt-to-income ratio

• Interest rate

• Periodic Rate

• Debtor income

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

• Elastic

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

• Purchases

• Installments

• Balance transfers

• Cash advances

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

• Double balance

• Adjusted balance

• Average daily balance

• Previous balance

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

• Double balance

• Adjusted balance

• Average daily balance

• Previous balance