Intro to Credit

Front

Bills and Loans are examples of ________?

Back

Liabilities

Front

The Balance On your Credit Card would be considered a/an

Back

liability

Front

Which of the following is considered an asset? credit card debt, savings, car payoff, student loan

Back

savings

Front

You can have negative Net Worth.

Back

True

Front

Assets=$20,000
Liabilities=$50,000
What is the net worth?

Back

- $30,000

Front

What is the principal amount in a loan agreement?

Back

The amount of money borrowed

Front

Why might someone consider choosing a loan with the lowest monthly payment?

Back

Low payments fit better in their monthly budget

Front

What does "interest" refer to in the context of a loan?

Back

The fee charged for borrowing money

Front

What does "term" typically refer to in the context of a loan?

Back

The duration for which the loan is taken

Front

How does a longer loan term affect the total interest paid?

Back

It increases the total interest paid