PERSONAL FINANCE B
UNIT 4 REVIEW
1)
Something of value that can be sold to pay a debt is _______
a)
2)
cash advance
retail
b)
line of credit
c)
usury
d)
closed end
pawn brokers b)
retail
c)
service
d)
finance companies
balance due b)
deferred billing
c)
credit
d)
open ended credit
creditor
b)
retail
c)
cash advance
d)
line of credit
closed end
b)
open end
c)
service
d)
cash advance
The total amount that remains due on a loan, including both principal and interest, is known as
__________.
a)
8)
d)
A loan for a specific amount that must be repaid in full, including finance charges, by a stated
due date, is called ________ credit.
a)
7)
usury
A(n) _______ is money borrowed against the credit card limit.
a)
6)
c)
A service to customers called _______ allows you to charge now and not be billed for several
months.
a)
5)
pawn broker
Small loan companies, also called _________, charge higher interest rates and take more risk.
a)
4)
b)
In some states, maximum interest rates are set by _______ laws.
a)
3)
collateral
finance charge
b)
account
c)
balance due
d) loan shark
The type of credit of having work performed now and paying for it later.
a)
service
b)
retail
c)
cash advance
d)
collateral
9)
A(n) _______ is a legal business where loans are made based on the value of merchandise used
as collateral.
a)
10)
pawn broker
service
b)
retail
c)
usury
d)
finance companies
30 day credit agreements
APR
b)
d)
revolving credit agreements
installment loans
telephone bill
gasoline purchase
b)
d)
bank credit card
retail store agreement
they
they
they
they
are small and have less money to lend
are small and have less money to lend
take more risk
compete with banks and savings and loans for business
interest is included in each monthly payment
new purchases may be added on
new purchases may not be added on
this type of account generally has a maximum amount
General Motors Acceptance Corporation (GMAC) is an example of a ________
a)
c)
16)
d)
Which statement about an installment purchase agreement is not true?
a)
b)
c)
d)
15)
loan minnow
Finance companies charge higher rates of interest on loans because:
a)
b)
c)
d)
14)
c)
Which of the following is an example of service credit?
a)
c)
13)
loan whale
Credit cards such as VISA and MasterCard are examples of:
a)
c)
12)
b)
Businesses called ______ stores offer goods and services directly to consumers and include
department stores, drugstores and clothing stores.
a)
11)
loan shark
retail store
sales finance company
b)
d)
credit union
loan shark
Where usury laws exist, financial institutions may charge whatever rate of interest is agreed
upon.
a)
True
b)
False
17)
If you only pay the minimum amount due on your credit cards, then you are:
a)
18)
Stupid—really, really stupid
building bad credit
giving your credit card company extra money each month in the form of interest
budgeting your money wisely
A co-signer to a loan must agree to:
a)
b)
c)
20)
b)
If you only pay the minimum amount due on your credit cards, then you are:
a)
b)
c)
19)
Smart—really, really smart
alternate making payments with the borrower
pay the loan if the borrower is unable
pay the financial payment
Mr. Meadows has taught me that it is smart to:
a)
b)
c)
d)
use credit cards to purchase Mr. Meadow’s Christmas present
use credit cards for cash advances
text message
be a balance payer on credit cards