Exam 5: Consumer Credit: Advantages, Disadvantages, Sources, and Costs

According to the Fair Credit Billing Act of 1975, a creditor must adjust the disputed amount in your account or tell you why the bill is correct within 30 days.

Consumer credit refers to the use of debit cards for personal needs.

A disadvantage of using credit is the convenience it offers when making a hotel reservation or renting a car.

Credit bureaus get their information from all of the following sources except

Consumer credit may allow businesses to be more efficient or more productive.

Closed-end credit is used for a specific purpose and involves a specific amount.

Suppose you borrow $300 for one year and pay a finance charge of $20. If you repay this loan all at once after one year, what is your average balance?

The longer it takes for you to pay off a bill, the less interest you pay.

Which of the following questions is NOT needed before deciding how and when to make a major purchase?

Becka borrowed $100 from her cousin at the rate of 6% per year. If the inflation rate was 2% that year, what is her cousin's actual rate of return on the loan?

Which of the following can result from a failure to repay a loan?

The finance charge for credit includes all of the following except

In the five Cs of credit, capital refers to the borrower's ability to pay additional debts.

FICO scores generally range from

The periodic charge for the use of credit is called

Peter borrowed $225. He paid $20 interest and a service charge of $3.00. What is his finance charge?

Which of the following is often considered to offer the least expensive loans (loans with low interest)?

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

A typical grace period offered by many credit card issuers is

Which of the following electronically subtracts money from your savings or checking account to pay for goods and services?