WorksheetsManaging Credit: Sources and uses. Lesson 1-2
Total questions: 10
Worksheet time: 5mins
What are two types of consumer credit?
Close and Open
Closed-open and Open-closed
Closed-end and open-end
Loans and credit
What is Close-end credit?
One-time loan paid back in a specified time in payments of equal amounts.
A line credit loan paid back in payments of variable amounts.
A credit card
Several-time loan paid back in payments of equal amounts.
What is Open-end credit?
A line of credit in which loans are made and repaid on a continuous basis.
One-time loan paid back in a specified time in payments of equal amounts.
A Loan
A line of debit in which loans are made and repaid on a continuous basis.
What are the major sources of Inexpensive loans?
Parents, Family Members, Friends
Commercial Banks, Savings and Loans, Credit Unions
Finance Companies, Retail Stores, Credit Cards
What are the major sources of Medium-priced loans?
Parents, Family Members, Friends
Commercial Banks, Savings and Loans, Credit Unions
Finance Companies, Retail Stores, Credit Cards
What are the major sources of Expensive loans?
Parents, Family Members, Friends
Commercial Banks, Savings and Loans, Credit Unions
Finance Companies, Retail Stores, Credit Cards
A good reason to borrow is a medical emergency
True
False
Which is an unnecessary reason to borrow?
Borrowing for everyday living expenses.
Borrowing for college education.
Borrowing for invest.
Consumer credit refers to the use of credit for personal needs by individuals and families.
True
False
What is the interest?
A periodic charge for the use of credit.
A periodic charge for the use of debit.
A periodic charge for the use of time.
