Credit and Interest

Question 1

When a customer buys something with a credit card, the

Revolt · Accepted Answer

"bank"

Question 2

Visa and MasterCard are examples of credit card __________.

Revolt · Accepted Answer

brands

Question 3

Each of the following can be a form of collateral when applying for a loan EXCEPT:

Revolt · Accepted Answer

cash

Question 4

The annual percentage rate is the interest on a loan paid in __________.

Revolt · Accepted Answer

installments

Question 5

When paid interest is stated as a dollar amount it is called __________.

Revolt · Accepted Answer

finance charge

Question 6

The pre-approved amount of money that a bank is willing to lend a credit card holder is the credit __________.

Revolt · Accepted Answer

limit

Question 7

The amount owed when credit is used is equal to the __________ plus __________.

Revolt · Accepted Answer

principal . . . interest

Question 8

Each of the following is an advantage of using cash EXCEPT:

Revolt · Accepted Answer

less painful parting with cash

Question 9

Interest allows creditors to be paid for giving up __________.

Revolt · Accepted Answer

opportunities

Question 10

Which form of credit imposes a credit limit, is unsecured, is high in interest, and has a bank or financial institution as a lender?

Revolt · Accepted Answer

a credit card

Credit and Interest Answers