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WorksheetsBanking & Finance- Ch 25 Quiz
Total questions: 25
Worksheet time: 13mins
Which term refers to a person w ho lends money or provides credit?
debtor
consumer
creditor
borrower
Which term refers to a loan fee, or percentage of the amount borrowed?
interest rate
interest base
consumer credit
creditor rate
Which term could be used to refer to the use of credit by a manufacturer to finance the development of a energy-efficient truck?
commercial credit
consumer credit
military spending
government spending
Which is a factor that contributes to a good credit rating?
avoiding the use of credit
reaching your credit limit
using credit in an emergency
paying your bills on time
Which is NOT an advantage of using credit?
traveling without large amounts of cash
handling emergency financial needs
committing future income to debt repayment
contributing to the growth of hte economy
Which might cause your credit rating to be lowered?
using credit in an emergency
paying late or missing payments
using savings instead of credit
putting off purchases for a while
Which is something you should consider before using credit to finance a major purchase?
What is the difference between commercial and consumer credit?
What are the costs of using credit to make this purchase?
Will the purchase contribute to economic grow th?
Have you recently used credit to make other purchases?
Which might be obtained from a department store?
charge account
credit card
travel and entertainment card
credit union account
Which depends on the degree of risk a creditor takes in lending money or selling on credit?
whether the loan is short-term or long-term
whether the borrow er makes full or partial payment
the use of a credit card or charge account
the cost of the credit to the borrower
Which is NOT a w ay credit card companies earn money?
late fees and penalties
annual fees
interest
sales taxes
Which type of card often requires payment of the full amount due at the end of each month?
single-purpose card
travel and entertainment card
multipurpose card
installment card
Which would most likely be issued by a bank?
single-purpose card
travel and entertainment card
multipurpose card
charge account
Which is true of single-purpose credit cards?
Cardholders can pay part or all of the amount ow ed at the end of each 30-day period
Interest is paid on the original amount financed at the end of each 30-day period..
Cardholders must pay the full amount ow ed at the end of each 30-day period.
Single-purpose cards can be used at different stores all over the w orld.
Which type of loan might a farmer use to finance the grow ing of a crop?
single-payment loan
installment loan
mortgage loan
seller-provided loan
Where might someone w ith no credit record or a poor credit rating expect to get long-term credit?
a bank
a credit card company
a payday advance service
a consumer finance company
The type of credit that people use for personal reasons is called credit.
consumer
individual
personal
retail
If you buy something on credit and take six months to pay for it, your total payments will _____ the original purchase price.
be equal to
be less than
be more than
not be affected by
If a consumer has a $10,000 credit limit on a credit card and an outstanding balance of $7,500, the cardholder can charge ________more to the card.
2,500
7,500
10,000
17,500
Late or missed payments to credit card companies ____ your credit rating
do not affect
limit
lower
raise
When businesses borrow money they often pass along the cost of interest to consumers in the form of
finance charges
higher prices
interest and fees
lower wages
The most important factor in determining the cost of credit is the
amount of the loan
risk the creditor takes
risk the debtor takes
length of the loan
A ____ credit card can be used only to buy goods or services at the business that issued the card.
single function
single use
single source
single purpose
Travel and entertainment cards require cardholders to pay ____ each month.
minimum payment
the full amount
a service fee
interest
A 15-year installment loan that is used for the purchase of a home is called a ____ loan.
home-improvement
real-estate
single-purpose
mortgage
Credit card holders receive a monthly ____ showing all the purchases they have made in the last month.
invoice
report
letter
statement
