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Chp. 16 Credit

Total questions: 11

Worksheet time: 13mins

Name
Class
Date
1.

Match the following

a)

The potential of credit not being repaid

1.

Credit Risk

b)

A numerical measure of a loan applicant's creditworthiness

2.

Credit Score

c)

One party lends another party goods or money with the understanding that it will be paid back later.

3.

Credit

d)

A record of credit history and financial behavior.

4.

Credit Report

e)

A company that collects past-due bulls for a fee.

5.

Collection Agency

2.

Match the following

a)

The total amount of money borrowed.

1.

Principal

b)

The party extending the credit.

2.

Creditor

c)

Total amount paid by a borrower to a lender for the use of credit.

3.

Finance Charge

d)

Credit granted based on a signed credit agreement.

4.

Unsecured Credit

e)

A set of guidelines used to determine how many and which customers are approved for credit.

5.

Credit Policy

3.

The party receiving credit is known as ____

a)

creditor

b)

debtor

c)

principal

d)

credit agency

4.

Credit loans that require collateral are known as

a)

secured credit

b)

unsecured credit

c)

open-end credit

d)

installment loans

5.

Which of the following is NOT an example of a proprietary credit card issuer?

a)

Target

b)

BP

c)

Visa

d)

Sears

6.

The three Cs of credit are character, capacity, and ___.

a)

Consumer

b)

Cash

c)

Co-signer

d)

Capital

7.

A loan for a specific amount of money that must be repaid with interest by a specified date or according to a specified schedule is ​ (a)   credit.

Choose from the below words
closed-end
open-end
trade
line of
installment
business
8.

A list of the individuals or businesses that owe money to a company is the ​ (a)  

Choose from the below words
accounts receivable
accounts payable
capacity
installment
collateral
9.

Property that a business uses to secure a loan is ___

a)

capital

b)

conditions

c)

collateral

d)

cash flow

10.

A ​ (a)   score is also known as a ​ (b)   score.

Choose from the below words
credit
FICO
capital
APR
cash
loan
11.

Simple Interest Formula: ​ (a)   x ​ (b)   x ​ (c)  

Choose from the below words
principal
rate
time
risk
fees
debt
credit