Unit 3/4

Question 1

Is installment debt consider a fixed or variable expense

Answer 1

Fixed

Question 2

Allows you to make purchase without using cash or credit.

Answer 2

Debit

Question 3

Receiving funds to buy goods or services today with the promise to pay them in the future plus interest.

Answer 3

Credit

Question 4

Something of value used to secure a loan.

Answer 4

Collateral

Question 5

Installment debt owed on the house, building, Or land.

Answer 5

Mortgage

Question 6

The inability to pay debts on income received.

Answer 6

Bankruptcy

Question 7

Financial institution that takes over contracts for installment debts from retailers and receives a fee for collecting the debt.

Answer 7

Finance company

Question 8

Hey logger streaking the amount of interest that can be charge for credit.

Answer 8

Usery law

Question 9

Cost of credit (including interest rates plus any regular fees) expressed in dollars and cents.

Answer 9

Finance charge

Question 10

Cost of credit (including interest rates plus any regular fees) expressed as a yearly percentage.

Answer 10

Annul percent rate

Question 11

What is another term for the cost of credit

Answer 11

Interest

Question 12

A loan backed up by collateral

Answer 12

Secure lone

Question 13

Loan Guaranteed only by a promise to repay it

Answer 13

Unsecured

Question 14

Amount of money originally borrowed

Answer 14

Principal

Question 15

The rating of the risk involved in lending money to a person in the form of a number.

Answer 15

Credit score or credit rating

Question 16

Amount of money a borrower must pay for the use of someone else’s money?

Answer 16

Interest

Question 17

And investigation into a person’s income, current debts, personal life, and past history?

Answer 17

Credit report or credit check

Question 18

Private business that investigates a person to determine the risk involved in leading them money?

Answer 18

Credit bureau

Question 19

Credit Device that allows a person to make purchases in many kinds of stores?

Answer 19

Credit card

Question 20

Manufactured items intended to last more than three years?

Answer 20

Durable goods

Question 21

Credit extended to a customer that allows him to buy goods and services at a particular store?

Answer 21

Charge account

Question 22

Debt that is repaid in equal payments over a fixed period of time?

Answer 22

Installment debt

Question 23

Bank owned and operated by members of the union to provide banking services to its members?

Answer 23

Credit union

Question 24

Bank that has the most money and accepts deposits, lend money, and transfers funds.

Answer 24

Commercial bank

Question 25

Thank you set up to serve smaller savers that are overlooked by commercial banks.

Answer 25

Saving banks

Question 26

Depository institution that accepts deposits and lends funds for home mortgages.

Answer 26

Saving loans

Question 27

The most important factor affecting consumer spending is

Answer 27

Current consumer finance

Question 28

The relation of your income to your debt. Looks at your employment history, how much money you make, and how much debt you are already in.

Answer 28

Capacity of debt

Question 29

Your reputation as a person including any criminal history and your educational level

Answer 29

Character

Question 30

The third “C” or the 3 C’s of credit from the 1950’s was _____ which means ______

Answer 30

Capital, money in saving

Question 31

The 3rd “C” of the 3 C’s of credit from today is_____ which means _________

Answer 31

Collateral

Something of value used to secure a loan

Question 32

Making consumer decisions based on opportunity cost and analyzing all possible solutions against ranked criteria.

Answer 32

Rational decision making

Question 33

People respond to____ and ____ incentives in ____ ways by allocating scare resources in a way that provides the highest possible ____

Answer 33

Positive
Negative
Preamble
Return

Question 34

Why do deposits extended for longer periods of time have a higher interest rate?

Answer 34

To compensate the saver

Question 35

Monetary policy, conducted by______, is changed the ______

Answer 35

The federal reserve

Money supply

Question 36

Fiscal policy conducted _____ is changing _____

Answer 36

Congress

Taxes on spending

Question 37

Inflation can be defined as an ___ in ___ or___ in______

Answer 37

Increase
Prices
Decrease
Value of money

Question 38

What is the difference in simple and compound interest?

Answer 38

Simple=interest on principle

Compound = interest on principle and interest

Question 39

Which group are hurt by unanticipated inflation?

Answer 39

Borrowers
Retires
Business owners

Question 40

3 types of taxes

Answer 40

Progressive= higher amount of money taxed at a higher percent
Regressive= lower amount at lower %
Proportional= all amounts are taxed at same rate