Ch. 13 Exam Review - Consumer Finances

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Credit is the privilege of using someone else’s money for a period of time

• True
• False

Most popular form of credit; you may charge purchases at any time but only part of the debt must be paid each month

• Regular accounts
• Budget accounts
• Revolving accounts
• None of the above

Requires that a customer make payments of a fixed amount over several months

• Regular accounts
• Budget accounts
• Revolving accounts
• None of the above

Requires the buyer to make full payment within a stated period – usually 25 to 30 days.

• Regular accounts
• Budget accounts
• Revolving accounts
• None of the above

Finance charges are the total dollar cost of credit, including interest and all other charges.

• True
• False

Bank Credit Cards such as American Express require a yearly membership fee usually higher than the fee charge cards

• True
• False

Master Cards and VISA Cards are the most common Bank cards

• True
• False

Collateral is a valuable asset such as car title that a borrower offers to a lender as security for a loan

• True
• False

American Express is an example of a Charge Card

• True
• False