Chapters 6, 7, 8, and 9 Exam

Credit is a term used to describe any situation in which goods, services, or money is received in exchange for a promise to repay at a future date. True or False?

• True

• False

Loans generally require equal payments over a set period of time.

• True

• False

Credit cards allow repeated use of credit as long as you make the minimum monthly payments.

• True

• False

Credit cannot be used to get expensive products sooner.

• True

• False

The cost of credit on a yearly basis as a percentage rate is called the APR.

• True

• False

Consumer credit is non-business debt used by consumers for expenditures including home mortgages.

• True

• False

Service credit is granted to consumers by utilities, physicians, dentists, and other service providers that do not require full payment when services are rendered. True or False?

• True

• False

If you cut up your credit card, the account is effectively closed. True or False?

• True

• False

The sticker price on a new car is typically the final sales price. True or False?

• True

• False

You can always get more for your old car by trading it in for a new car rather than selling it on your own.

• True

• False