5 Written Questions

1. a loan for a specific amount that must be repaid in full, including all finance charges, by a stated due date
2. the length of time the borrower will take to repay a loan; expressed as a fraction of a year
3. the intentional misrepresentation of information with the intent to deceive or mislead
4. money borrowed to buy something now with an agreement to pay for it later
5. a company that gathers, stores, and sells credit information to business subscribers

5 Matching Questions

1. Line of credit
2. Fixed-rate loans
3. Debtor
4. Annual percentage rate (APR)
5. Consumer advocate

1. a a person who actively promotes consumer causes
2. b the cost of credit expressed as a yearly percentage
3. c a person who owes money to others
4. d loans for which the interest rate does not change (up or down) over the life of the loan
5. e a pre-established amount that can be borrowed on demand with no collateral

5 Multiple Choice Questions

1. a shopping method that enables consumers to determine whether they are getting the best quality for the price
   1. Principal
   2. Credit rating
   3. Comparison shopping
   4. Garnishment
2. the complete record of your borrowing and repayment performance
   1. Credit rating
   2. Credit history
   3. Credit bureau
   4. Credit report
3. a person who promises in writing to repay a promissory note if the maker fails to pay
   1. Co-signer
   2. Capital
   3. Credit
   4. Character
4. property possessed that is worth more than debts owed
   1. Capacity
   2. Capital
   3. Credit
   4. Principal
5. the interest rate lenders offer to their best business customers
   1. Interest rate
   2. Principal
   3. Prime rate
   4. Credit

5 True/False Questions

1. Capacity → property possessed that is worth more than debts owed

   True        False

2. Down payment → a legal process that allows part of your paycheck to be withheld for payment of a debt

   True        False

3. Unused credit → the remaining credit available to you; calculated as your credit limit minus the amount you have already spent

   True        False

4. Simple interest → a pre-established amount that can be borrowed on demand with no collateral

   True        False

5. Character → a responsible attitude toward living up to agreements

   True        False