Ch 25/26 Test Review

Front

The one who lends the money is the

Back

creditor

Front

Which of the following DOES determine the dollar amount of interest you will have to pay on a loan?
length of loan, your salary, your parents salary, how many debit cards you have

Back

length of loan

Front

Do college students (ages 18-21) fit into the largest age group of people with credit problems?

Back

True

Front

What is the fee that creditors charge for using their money called?

Back

Interest

Front

Which type of loan does the book strongly recommend against using?

Back

borrow until payday loans

Front

How long does a medium term loan last for?

Back

1-5 years

Front

While installment loans are made during a period of time, which loans are made for a longer period such as 15-30 years?

Back

Mortgage

Front

The cost of a loan from a consumer finance company is higher than the cost of a loan from other sources since this loan involves a greater risk. True or False?

Back

True

Front

Why might be a good reason to use credit?

Back

For emergencies, so you do not have to have cash on hand, can buy larger products you do not have enough cash for.

Front

Governments (federal, state and local) issue credit, they do not use credit.

Back

false