Ch. 12, Lesson 2

When you apply for a credit card, the lender checks your ________.

 

• credit balance

• credit rating

• down payment

• credit line

Finance companies specialize in making loans to _______.

 

• banks

• corporations

• small businesses

• individuals

Cars and homes can be purchased on credit.

• true

• false

APR is a consideration in determining a person's credit rating.

• true

• false

The fee charged for using a credit card is called ________.

• APR

• interest

• late fee

• credit rating

Using a credit card is the same as borrowing money.

• true

• false

If you earn the same amount of money as you spend each month, you have a ________.

 

• positive balance

• negative balance

• balanced budget

• personal budget

If your monthly budget shows a deficit, you should _______.

 

• borrow money

• increase spending

• apply for a credit card

• try to spend less or earn more

To have a surplus in your budget, you must have _____.

 

• the same amount of expenses and income

• more expenses than income

• more income than expenses

• a negative balance

A budget is a monthly record that tracks only money you earn.

• true

• false