Exam 5: Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Timothy Carter went out to eat with his girlfriend at a fancy restaurant.When he tried to pay the bill with his Mastercard credit card,he was told that the restaurant accepted only cash or American Express.His waiter suggested that he use the ATM across the street to withdraw cash using his credit card.Tim did as suggested and didn't pay attention to any fees until he received his credit card statement one month later.He was shocked to see the total fees (3% cash advance),and his APR was increased to 21%.Given the cost of the meal ($125)plus the associated fees,how much did his meal cost him?

Fredrick received a $1,400 loan from the bank for a new appliance.The bank is using the simple interest formula for this two-year,8% loan.What is his total interest?

Interest paid on a credit card is tax-deductible.

Bankruptcy courts treat gift cards

In the five Cs of credit,capacity refers to the borrower's trustworthiness and stability.

A direct loan for personal purposes,home improvements,or vacation expenses is called

Carrie thought she misplaced her checkbook for a few days.When she found it,she noticed that two checks,her cash,and her debit card were missing.She immediately thought about the increase in identity theft in her area and decided to take some action.She should take all of the following steps except

Which of the following is NOT correct?

What steps should be taken if you find an error in your credit file?

A bankruptcy remains on a credit file for no more than 5 years.