BML 18-3 Question Preview (ID: 8725)

Business Management And Law, Ch 18 - Credit, Set 3.[print questions]

If you use a credit card to buy a shirt at the department store, you are using
a) poor judgment.
b) sales credit.
c) loan credit.
d) extra credit.

On loans with compounding interest,
a) interest is calculated on the amount that is unpaid at the end of each month.
b) interest is shot with a compound hunting bow.
c) interest is made up each month according to the whims of the creditor.
d) interest is made up of more than one type of molecule.

Service providers such as dentists and plumbers commonly offer __________ accounts.
a) budget charge
b) super double secret
c) regular charge
d) no type of credit

The most valuable number to consider when comparing credit among various borrowing sources is the
a) maturity date
b) total finance charge
c) annual percentage rate
d) principal

Which of these is NOT part of the Credit Card Act of 2009?
a) credit card companies may not change the interest rate without informing the customer
b) credit card companies must keep the due date on the same date each month
c) credit card companies are required to give a free gift whenever someone applies for a new account
d) anyone under the age of 21 must have either a cosigner or a source of income to get a credit card

The cost of using someone else's money is
a) interest.
b) debtor's fee.
c) installments.
d) personal pride.

The date on which a loan must be repaid is the
a) first date
b) promissory date
c) installment date
d) maturity date

Someone who sells on credit or makes a loan.
a) creditor
b) credit agency
c) debtor
d) credit counselor

A form on which you provide information a lender needs to decide whether to extend you credit is called a
a) credit report
b) promissory note
c) credit application
d) credit contract

A written promise to repay based on a debtor’s excellent credit history is a
a) promissory note
b) sales credit
c) collateral
d) lie

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