Borrowing Basics - Credit Basics

Which of the following is the issue of money, goods or services to an individual or entity with the expectation of future payments?

• Revolving Credit

• Interest

• Credit

• Debit

Which of the following is NOT an impact of credit decisions?

• Net Worth Statement

• Collateralized Statement

• Income Statement

• Monthly Budget

Which of the following involves a lending institution allowing a consumer to borrow money and then pay back some or all of it each month?

• Credit Card

• Payday Loan

• Interest

• Income Statement

Which of the following types of credit is issued and supported by a borrower’s reliability, rather than the value of an asset?

• Collateralized Credit

• Unsecured Credit

• Revolving Credit

• Installment Credit

In order to assess an individual’s credit worthiness, five factors are reviewed. Which of the following factors evaluates a person’s income and household expenses?

• Character

• Condition

• Capacity

• Collateral