Standard 6 CREDIT

What is money borrowed to buy something now, with the agreement to pay for it later called?

• Credit

• Loan

• Mortgage

• Installment

What was one of the earliest forms of credit in the US?

• Account at the general store

• Credit card

• Bank loan

• Payday loan

Over spending on credit cards has had what effect on the American consumer?

• Enormous debt

• Improved savings

• Increased wealth

• Better credit scores

Why do banks and stores encourage consumers to use credit?

• So they will spend more money

• To reduce transaction fees

• To improve customer loyalty

• To increase cash flow

When you borrow money or use credit you are a?

• borrower or debtor

• lender

• investor

• banker

The person or company that loans money or extends credit to you is the?

• Creditor

• Debtor

• Investor

• Borrower

What is the property that you possess that is worth more than your debts called?

• Capital

• Liability

• Expense

• Revenue

What is property pledged to assure repayment of a loan called?

• Collateral

• Interest

• Principal

• Amortization

The amount borrowed is known as the?

• Principal

• Interest

• Dividend

• Equity

The total dollar amount of all interest and fees you pay for the use of credit is called?

• Finance charge

• Credit limit

• Annual fee

• Minimum payment