Credit &Debt

______________________ is a legal process in which a person is declared incapable of paying debts to his creditors.

• A. Bankruptcy

• B. Credit limit

• C. Finance charge

• D. APR

______________________ is the ability of a person to use money they do not have, or, an arrangement to receive cash, goods, or services now and pay for them in the future.

• A. Credit

• B. Investment

• C. Savings

• D. Bankruptcy

______________________ a file maintained by credit reporting agencies evaluating a person's performance as a result of paying their bills.

• A. Credit report

• B. Credit limit

• C. Finance charge

• D. APR

______________________ an investment product that brings together money from many people to be invested and managed by a professional company.

• A. Mutual fund

• B. Credit card

• C. Savings account

• D. Loan

______________________ the habit of investing the same dollar amount in the same investment at regular intervals of time.

• A. Dollar-cost averaging

• B. Credit limit

• C. Finance charge

• D. APR

______________________ a temporary interest rate, advertised as a low APR, to entice customers to apply for a credit card. After the introductory period, the interest rate will increase to the regular APR.

• A. Introductory rate

• B. Credit limit

• C. Finance charge

• D. APR

______________________ is the range of FICO scores.

• A. 300-850

• B. 100-500

• C. 200-700

• D. 400-900

A card (usually plastic) that automatically withdraws money from the account of the holder, enabling that person to purchase goods or services.

• debit card

• credit card

• finance charge

• credit score

A card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered.

• debit card

• credit card

• finance charge

• credit score

A higher interest rate a person must pay on all credit cards if he/she is late paying one card.

• APR

• universal default rate

• depreciation

• credit