Unit 4 Review

Jose is applying for an automobile loan. The lender considers Jose creditworthy MOST LIKELY because Jose

• has many credit cards already.

• has made on-time payments to other loans.

• has a new job.

Which of these is LEAST LIKELY to determine credit worthiness?

• personal health history

• personal educational background

• payment history

• length of employment

A new video game is coming out in a month and you would like to have enough money to purchase it. Which of these is your BEST financial choice in buying the game?

• put money into a savings account at a bank

• spend more money now and buy the video game with a credit card

• ask the store if they will loan you the money for the video game

What is an example of credt?

• A person borrows money from a finance company to buy a car.

• A person deposits a paycheck into a savings account.

• A person pays interest on an existing mortgage.

While credit is all or part of an amount a borrow may use, debt is:

• the unused portion of credit.

• the amount of credit that is used.

• repaid before credit is extended.

The term describes a business that stores the money of people and businesses and makes loans to its consumers

• interst

• loan

• bank

This is the legally accepted payment for goods and services.

• debit

• credit

• money

Ability to obtain goods and services before payment, or money lent or made available, both with specific guidelines for repayment.

• credit

• debit

• bank

This is a type of banking card that, when used, withdraws money from a banking account that is linked to that card.

• debit

• credit

• loan

This is an amount that is borrowed from a bank or credit union.

• interest

• loan

• bank