Credit Slides 1-20 Quizizz

What is credit defined as in the context of borrowing?

• The ability to lend money to others.

• The ability to borrow money in return for a promise of future repayment.

• A financial penalty for late payments.

• A reward system for regular payments.

What are the two components usually included when repaying borrowed money?

• Interest plus dividends.

• Principle plus taxes.

• Interest plus principle.

• Taxes plus fees.

What does building equity in a home mean?

• Decreasing the value of the home over time.

• The difference between the amount owed and the value of the home.

• The process of selling a home.

• Increasing the mortgage loan amount.

Which of the following is a benefit of owning a home?

• The value of the home usually decreases over time.

• Home ownership has no tax advantages.

• The value of the home usually increases over time.

• Renting is more beneficial than owning.

What tax advantage is associated with owning a home?

• Sales taxes are reduced.

• Property taxes and interest are tax deductible.

• Income taxes are waived.

• Luxury taxes are not applicable.

What is a crucial financial consideration before taking out a loan?

• Can I afford to make the payments on the loan?

• Will my friends approve of the purchase?

• Is the loan available in a foreign currency?

• Can I negotiate a lower purchase price for the product?

What is one of the advantages of using credit?

• Increased cost of merchandise

• Impulse purchases

• Temporary expansion of income

• Security concerns including ID theft

Which of the following is a disadvantage of using credit?

• Safety due to the ability to cancel a stolen card

• Record keeping with monthly statements

• Costs of credit including finance charges and fees

• Temporary expansion of income

What does the safety advantage of credit refer to?

• The ability to buy things without credit

• The ability to cancel a stolen card and dispute charges

• The increased cost of merchandise

• The opportunity cost of using credit

What is a potential risk associated with the use of credit?

• Record keeping

• Safety

• Loss of property through repossession or foreclosure

• Temporary expansion of income