PBMF Ch 18 Consumer Credit

Front

Credit is the privilege of using someone else’s money for a period of time.

Back

True

Front

Businesses use charge accounts to obtain goods from a supplier and pay for them later.

Back

False

Front

Most business owners do not like bank credit cards because the business must take on the liability and expense of granting credit.

Back

False

Front

Collateral is a written promise to repay a loan based on a debtor’s credit history.

Back

False

Front

Principal × Rate × Time = Interest.

Back

True

Front

Amortization schedules show that when loans are first taken, a larger percentage of the payments go to interest.

Back

True

Front

Character refers to a person’s ability to pay a debt when it is due.

Back

False

Front

A credit card company sends customers a weekly statement of account, which is a record of transactions completed during the week.

Back

False

Front

In most states, married women do not have a legal right to establish credit in their own names.

Back

False

Front

Bankruptcy is the legal process of reducing or eliminating an amount owed.

Back

True